Halliburton announces Baker integration plan

After one of the biggest merger deals of the year, Halliburton is moving forward with the announcement of its new board of directors, beginning with the appointment of Mark McCollum as executive vice president and chief integration officer.

Last month, the two Houston-based companies announced a definitive merger agreement under which Halliburton will acquire Baker Hughes, subject to the conditions set forth in the agreement, in a US$34.6 billion stock and cash deal. The deal is expected to close in 2H 2015 and will possibly create $2 billion a year in cost synergies annual and may result in up to $7.5 billion in divestments.

The deal is subject to approvals from each company’s stockholders, regulatory approvals and customary closing conditions. Law firm Baker Botts LLP is advising Halliburton, along with Wachtel, Lipton, Rosen & Katz. Baker Hughes’ legal advisors are Davis Polk and WilmerHale.

The combined company will retain the Halliburton name and the headquarters will continue to be in Houston.

In this new role, McCollum will serve as the head of the joint integration team that Halliburton and Baker Hughes are assembling in connection with Halliburton’s pending acquisition of Baker Hughes.

Belgacem Chariag, president of global products and services for Baker Hughes, will serve as lead for Baker Hughes on the joint integration team.

McCollum previously served as executive vice president and chief financial officer (CFO) of Halliburton. He will continue to report to Dave Lesar, chairman and chief executive officer of Halliburton, and will remain a member of the company’s executive committee.

In his place, Christian Garcia, senior vice president and chief accounting officer, will become senior vice president of finance and assume CFO responsibilities on an interim basis. It is anticipated that McCollum will resume his CFO duties when the integration concludes. Garcia will report to Lesar and will join Halliburton’s executive committee.

Charlie Geer, currently vice president of finance, will become vice president and corporate controller and will take over Garcia’s accounting responsibilities on an interim basis as well. He will continue reporting to Garcia.

The new roles are effective 1 January 2015.

In 2013, Halliburton and Baker Hughes had $51.8 billion in revenues, more than 136,000 employees and operations in more than 80 countries around the world.