Justice Dept. OKs Halliburton-Dresser Merger

The Justice Department approved the merger of Halliburton Co. and Dresser Industries Inc. after Halliburton agreed to sell part of its worldwide oil field service business to resolve concerns that the deal would reduce competition. The department said Halliburton would sell its logging-while-drilling business and had earlier agreed to sell its 36% interest in M-I Drilling, a drilling fluids business. Logging-while-drilling services provide oil and gas companies with information about the formation through which those companies are drilling--whether there is oil in the formation and how easily it can be extracted. They are particularly useful in offshore drilling. Worldwide revenue for LWD services in 1997 exceeded $500 million. Halliburton’s total revenue exceeded $8 billion in 1997. Dresser had $7.5 billion in total 1997 revenue. Both companies are based in Dallas. Halliburton’s shares rose $1.06 to close at $30.50 on the NYSE.