Baker Hughes up 10% after merger with Halliburton

Baker Hughes skyrocketed in the US trading after announcing a merger with Halliburton.

Under the agreement, Halliburton will by its rival oilfield services company for a deal worth $34.6bn (£22.1bn) in cash and stock.

Specifically, Baker Hughes shareholders will receive $19 in cash plus 1.12 Halliburton shares for each share that they own.

Baker Hughes shareholders will own approximately 36% of the company after the transaction goes through.

Halliburton noted that is expects $2bn in cost synergies annually and that adquisition should be accretive to cash flow at one year after closing.

The operation is expected to be completed by the second half of 2015.

At 20:12, shares of Baker Hughes jumped 10.04% to $65.90, while Halliburton crashed 10.07% to $49.15.