How the failed Halliburton-Baker Hughes deal reveals the problem with mergers

In capitalism, sometimes mergers are just cheats

Mergers are not always successful.
(Image credit: Fanatic Studio / Alamy Stock Photo)

A $28 billion mega-merger between oil field services giants Baker Hughes and Halliburton went down in flames this weekend. How it happened raises some big questions not just about the two companies but about the very wisdom of mergers themselves.

Halliburton and Baker Hughes are the second and third-biggest companies in the world when it comes to supplying technology and assistance to oil drilling projects. But the field's leader is Schlumberger, and one key goal of the combination was to better rival that company's market share.

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Jeff Spross

Jeff Spross was the economics and business correspondent at TheWeek.com. He was previously a reporter at ThinkProgress.