The antitrust regulator said that the merger deal, which was signed in 2014 between the companies would raise competition concerns in a number of markets for the supply of oilfield goods and services.
ACCC chairman Rod Sims said: "The ACCC is concerned that the acquisition would result in the merged entity being one of only a small number of suppliers that could service the relevant markets."
Additionally, ACCC said its primary concern is related with the supply of complex or high-risk projects, such as off-shore drilling projects, as a result of the acquisition.
"The ACCC is concerned that the merger parties are two of the ‘big 3’ global oilfield services providers.
"These businesses have significant competitive advantages in providing services as they benefit from extensive product ranges, economies of scale and scope, large R&D budgets and significant industry experience."
Sims noted that the ACCC expects the deal would create conditions that would facilitate coordinated market behavior.
ACCC plans to make a final decision by 17 December 2015 following reviewing potential comments from the market in response to the statement of issues which are due to be received by 12 November 2015.
Competition authorities in a number of jurisdictions, including the US, the European Union, India and China, are also reviewing the proposed acquisition.
Separately, the ACCC is planning to decide on the proposed $70bn acquisition of BG Group by Royal Dutch Shell following detailed review, on 12 November, reported Bloomberg.
The regulator has undertaken detailed review of the deal following concerns raised in September that the deal could result in reduce natural-gas supply and increase prices in Australia.
Image: Halliburton’s North Belt Campus and headquarters at Houston, Texas, US. Photo: courtesy of 0x0077BE/Wikipedia.
