Halliburton's planned deal for Baker Hughes is seen as changing the competitive landscape in the oilfield services industry. But it may also present game-changing opportunities for small and mid-cap services firms, said analysts.
To push the deal past antitrust regulators, Halliburton will likely sell off some of its own business lines, including entities that are successful on their own. And that may give smaller firms the chance to grow by acquiring the divested interests. It's also likely to attract the interest of private equity firms.
"There's a lot of good businesses in there, and should some of those shake lose, that's an opportunity for the mid-caps and small caps," said Jeff Tillery, head of research at Tudor Pickering Holt.