Halliburton, Baker Hughes Consider Merger

Halliburton Co. is in talks to buy Baker Hughes Inc. in a deal that would combine two of the largest and oldest names in the energy business as plunging oil prices send the industry into a downturn.

By eliminating a competitor, Halliburton, already the world’s second-biggest provider of oilfield services, would gain market clout that would help insulate it from a sustained market decline. A combination of Halliburton with No. 3 Baker Hughes would be a little more than half the size of larger rival Schlumberger Ltd.