Halliburton Company (NYSE:HAL) is reportedly close to buying well equipment firm Summit ESP.
Summit, described as a fast-growing equipment supplier, is owned by Oklahoma based billionaire George Kaiser.
The acquisition target makes specialist pumps that are installed into maturing oil and gas wells to maximise production. It is estimated to be a US$5bn a year market.
Halliburton’s main rivals are among the dominant players in the ESP market – with Schlumberger, Baker Hughes, and Weatherford having much of the market share. Summit is said to have brought in US$180mln of revenue last year.
A Reuters report stated that Halliburton and Summit have been in ‘on and off’ talks over the course of the last year, though there have been ‘valuation differences’.
Halliburton shares were slightly higher on Wednesday, at US$41.55 ahead of the opening bell in New York.