Dip in oil prices may prevent merged mega company from raising charges

New York

LOW oil prices that threaten producers' profits may be a boon in one way, as they force service companies to keep prices low for the drill bits, cement and piping for oil extraction, even if two of the largest providers of such products merge.

Halliburton Co, said on Monday that it will buy Baker Hughes Inc, in a US$35 billion deal that would create an oilfield services company to take on global oil services leader Schlumberger NV.

Some experts have raised concerns that the deal, which would merge the world's second and third largest service companies, will reduce competition and po…