Halliburton Buying Dresser for $8.9 Billion

Oilfield giant Halliburton Co. confirmed it is acquiring Dresser Industries Inc. for $8.9 billion in stock and assumed debt, forming the world’s leading provider of drilling and construction services to the oil industry. The purchase will give Halliburton more than $16 billion in annual revenue. Dresser’s strength is in offshore and undersea production services; Halliburton’s expertise is in shallower waters. The Dallas-based companies said their combined construction units will boost their ability to pursue multibillion-dollar projects such as petrochemical plants. Under the agreement, each Dresser share will be exchanged for one Halliburton share, and Halliburton will assume about $800 million in Dresser debt. The companies said they expect the acquisition to cut costs by $250 million a year, helping push Halliburton shares up $2.50 to $46.50 and Dresser’s up $6.06 to $44.50. Both companies trade on the New York Stock Exchange.