GE merges with Baker Hughes in $32 Billion Deal
On Monday General Electric Co (GE) announced that they would be merging their petroleum related operations with Baker Hughes Inc to create the second largest oilfield service company in the world. This new company will be one of the biggest players in the oil industry, and will bring together the oilfield services, equipment manufacturing, and technology from both GE and Baker Hughes. The deal is expected to close by mid-2017.
Under the terms of the deal GE would own 62.5% of the merged company, with Baker Hughes shareholders owning the rest. The new company will have annual revenues of 32 billion USD, and have operations in more than 120 countries.
“Oil and gas customers demand more productive solutions” “This can only be achieved through technical innovation and service execution, the hallmarks of GE and Baker Hughes” said GE Chief Executive Jeff Immelt, who will be chairman of the new business.
The deal still needs the approval of Baker Hughes shareholders and US regulators, which may not be smooth sailing after the failed merger with Halliburton in 2014 that was rejected by antitrust regulators this year.