General 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.
This year, following companies will attend: Evolution Mining / Perseus Mining / Panoramic Resources
Are you considering doing an MBA or Executive MBA ? Then don't miss this opportunity and attend the
Private Equity in Zug: Der langfristige Horizont von Private Equity Investoren
The Lead Quantitative & Asset Management Event in Europe
Festival für Trends und die Zukunftsperspektiven im Marketing
Updates and news from MarketPlus
|SMI PR||8551.17||0,43 %|
|LYXOR DAX INAV||113.803||0,50 %|
|FTSE MIB Index||19051.06||0,38 %|
|FTSE 100||7290.20||-0,13 %|
|CAC 40||4874.83||0,20 %|
|S&P 500||2351.16||0,17 %|
|NASDAQ Composite||5838.58||0,41 %|
|HANG SENG INDEX||23963.63||-0,76 %|
|Powered by Yahoo Finance|