Mergers: EU Commission clears the creation of a joint venture between Saudi Aramco Development Company and Baker Hughes Company
The European Commission has approved, under the EU Merger Regulation, the creation of a joint venture between Saudi Aramco Development Company (“SADCO”) of Saudi Arabia, and Baker Hughes Company of the U.S.
The joint venture will be engaged in the construction and operation of manufacturing facilities for the production of non-metallic/composite products of use in oil and gas applications.
SADCO is a wholly owned subsidiary of the Saudi Arabian Oil Company (“Saudi Aramco”) of Saudi Arabia. Saudi Aramco explores, produces and markets crude oil and, to a lesser extent, refined products and petrochemicals.
Baker Hughes provides integrated oilfield products and services for oil and gas development upstream, midstream and downstream.
The Commission concluded that the proposed acquisition would raise no competition concerns, given that the joint venture will not be active in the European Economic Area.
The transaction was examined under the simplified merger review procedure. More information is available on the Commission’s competition website, in the public case register under the case number M.9804.
Arianna Podesta –