NEW YORK (TheStreet) -- Shares of Halliburton Co (HAL) are down 6.57% to $51.46 in morning trading Monday, after the company bought rival oilfield services company Baker Hughes (BHI) in a cash and stock deal worth $34.6 billion.
The combined company which manages oil and gas fields for energy companies, will be able to reduce costs by $2 billion a year, the Associated Press reports.
Baker Hughes shareholders will receive 1.12 Halliburton shares plus $19 in cash for each share they own, the companies said in a statement this morning, Bloomberg reports.
Must Read: Warren Buffett's 25 Favorite Stocks
The merged company would generate slightly larger revenue than Schlumberger Ltd. (SLB) , claiming the title of the world's biggest oil services company.
Houston, TX-based Halliburton provides services and products to the energy industry related to the exploration, development, and production of oil and natural gas.
Separately, TheStreet Ratings team rates HALLIBURTON CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate HALLIBURTON CO (HAL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, impressive record of earnings per share growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."