31.10.2016

GE, Baker Hughes: mega deal in gas and oil business

400General Electric (GE) and Baker Hughes (BHI) will combine to form a $32 billion oil and gas group, the two companies confirmed in a statement Monday. The combination will create the second-largest player in the oilfield services industry in terms of revenue after Schlumberger.
The move comes just a few months after Houston-based Baker Hughes’ nearly $35 billion acquisition by Halliburton was nixed by the Justice Department because of anti-competition concerns.

The deal will see GE owning 62.5% of the combined group, against 37.5% for Baker Hughes shareholders, who will receive a special dividend of $17.50 a share. That one-off payment will be funded by a $7.4 billion contribution from GE, the two companies said.
Lorenzo Simonelli, chief executive of GE Oil & Gas will become the CEO, and he called the deal a “transformative transaction” to create a powerful force in the oil and gas market.  GE chairman and chief executive Jeffrey Immelt will become chairman of the new Baker Hughes. The deal is expected to close in mid-2017, the companies said.

"This transaction creates an industry leader, one that is ideally positioned to grow in any market," GE Chief Executive Jeff Immelt said in a statement.

"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."
The new company formed by the merger will still be known as Baker Hughes and listed on the New York Stock Exchange. It will have dual headquarters in London and Houston.


Events


Semptember 2015
  • 24
    Jan

    The constant and fast growth of impact investing during the last few years shows the economic signif

  • 25
    Jan

    Why Malta – a vibrant economic environment in a dynamic jurisdiction

  • 25
    Jan

    The Paris Fintech Forum 2017, organized by Altéir with the support of 60+ international partners, a

  • 26
    Jan

    I presidi informativi in fase di implementazione a livello internazionale ed europeo attraverso le m

  • 26
    Jan

    Im Banking steht der Kunde im Zentrum, das war schon immer so. In einem sich stark verändernden Umf

See All

newsletter

Updates and news from MarketPlus

Market Overview
SMI PR8275.130,02 %
LYXOR DAX INAV111.4130,29 %
FTSE MIB Index19479.46-0,06 %
FTSE 1007198.44-0,14 %
CAC 404850.670,20 %
S&P 5002271.310,34 %
NASDAQ Composite5555.330,27 %
HANG SENG INDEX22885.91-0,72 %
Powered by Yahoo Finance