Big Oil Deals Are Back as Halliburton Makes First Move: Real M&A

Halliburton Co.’s deal for Baker Hughes Inc. may be just the start of big energy takeovers as oil prices slump.

Crude has plunged to a more than four-year low amid a U.S. supply glut. That’s making top energy companies, from equipment makers to oil explorers, cheaper for buyers that have the capital to survive and the confidence to strike. Halliburton, a $47 billion provider of oilfield services and equipment, approached Baker Hughes about a combination several weeks ago, a time when the target was trading near its cheapest price in more than a year. The forces that drove them together will likely spur on other dealmaking as well.