Halliburton Engaged in Bidding War for European Oil Contractor

Halliburton, the second largest oil field services company, is in a bidding war to buy European-based oil contractor Expro. In April, a private equity consortium, Umbrellastream, made a $3.2 billion offer to buy Expro. Halliburton countered with a $3.36 billion offer of its own. Within hours, Umbrellastream topped Halliburton with a $3.4 billion offer. Halliburton has until June 20th, to revise its offer, but Expro has a shareholders’ meeting on June 9th, and has recommended that shareholders accept the revised Umbrellastream offer. More bidding could follow, however, given the small spread between offers.

Expro, based in Reading, England, provides services and products that measure the flow of oil and gas from wells. Its equipment can test wells drilled in waters deeper than 3,300 feet – technology that Halliburton does not currently have. Expro’s annual revenue in the year ending March 31st, was reportedly $1.2 billion, up 18% from a year earlier.

Like many private equity firms, with the acquisition of Expro, Umbrellastream is likely looking to profit from the boom in commodities. Halliburton, meanwhile, would be able to reduce its dependence on North America by acquiring offshore well-testing technologies. The equipment would allow Halliburton to expand its oil exploration to deep water, which could increase its international reach and the range of products it offers.