US financial press is reporting that Halliburton is in advanced talks to buy Baker Hughes in what could be one the most significant combinations in the history of oil service and drilling companies.

The deal would see the worlds second and third largest oil service companies combine creating a company valued at over £50Billion

Shares of Baker spiked on the news and were halted in afternoon trading up 26%.

Based on current market values if the sale went ahead the new entity’s combined market cap would be close to £50bn still about £35bn behind Schlumberger which is the largest oil and gas service company globally.

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