• 4 hours Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 8 hours Russia, Saudis Team Up To Boost Fracking Tech
  • 14 hours Conflicting News Spurs Doubt On Aramco IPO
  • 16 hours Exxon Starts Production At New Refinery In Texas
  • 17 hours Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 1 day Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 1 day Oil Gains Spur Growth In Canada’s Oil Cities
  • 1 day China To Take 5% Of Rosneft’s Output In New Deal
  • 2 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 2 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 2 days VW Fails To Secure Critical Commodity For EVs
  • 2 days Enbridge Pipeline Expansion Finally Approved
  • 2 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 2 days OPEC Oil Deal Compliance Falls To 86%
  • 2 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 2 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 3 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 3 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 3 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 3 days Aramco Says No Plans To Shelve IPO
  • 5 days Trump Passes Iran Nuclear Deal Back to Congress
  • 5 days Texas Shutters More Coal-Fired Plants
  • 6 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 6 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 6 days Chevron Quits Australian Deepwater Oil Exploration
  • 6 days Europe Braces For End Of Iran Nuclear Deal
  • 6 days Renewable Energy Startup Powering Native American Protest Camp
  • 6 days Husky Energy Set To Restart Pipeline
  • 6 days Russia, Morocco Sign String Of Energy And Military Deals
  • 6 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 7 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 7 days India Needs Help To Boost Oil Production
  • 7 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 7 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 7 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 7 days District Judge Rules Dakota Access Can Continue Operating
  • 7 days Surprise Oil Inventory Build Shocks Markets
  • 8 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 8 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 8 days Chinese Teapots Create $5B JV To Compete With State Firms
New Tech Could Turn Seaweed Into Biofuel

New Tech Could Turn Seaweed Into Biofuel

Scientists discovered an unlikely abundant…

Big Oil Refuses To Give Up On The Barents Sea

Big Oil Refuses To Give Up On The Barents Sea

Despite failures in the Barents…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Baker Hughes To Merge With GE Oil & Gas Business In $32B Group

Oil pipeline

GE (NYSE:GE) and Baker Hughes (NYSE:BHI) said on Monday they had agreed to merge GE’s oil and gas business with Baker Hughes to create an oil and gas industry technology and services provider worth US$32 billion in combined revenue.

Under the terms of the agreement, GE would hold 62.5 percent in the new company, while Baker Hughes shareholders would get 37.5 percent of the “new” company.

Existing Baker Hughes shareholders will also receive at the closing of the transaction a special one-time dividend of US$17.50 per share and GE will contribute US$7.4 billion to fund the payment of that dividend.

The transaction is expected to close in the middle of next year, and to generate synergies of US$1.6 billion by 2020. It is also seen as adding US$0.04 to GE’s earnings per share (EPS) by 2018, and US$0.08 by 2020.

In the structure of the new company, GE will have its chairman and CEO Jeff Immelt serve as chairman of the board of directors, and GE Oil & Gas president and CEO, Lorenzo Simonelli, will serve as president and CEO. Baker Hughes chairman and CEO Martin Craighead will serve as vice chairman of the board.

The deal needs to be approved by Baker Hughes shareholders and by regulators in order to go through.

According to Bloomberg, the merger would create the world’s second-biggest oilfield services group after Schlumberger (NYSE:SLB). Baker Hughes, currently sitting pretty as the world’s number 3 oilfield services group, would overtake Halliburton Company (NYSE:HAL) in terms of sales.

It was with Halliburton that Baker Hughes had tried to merge as the crude price downturn had hit hard the oilfield services sector. Earlier this year, however, Halliburton and Baker Hughes called off the planned deal, saying they were unable to overcome federal antitrust regulators.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Bob on October 31 2016 said:
    This merger is a tricky one. A major service provider with a major equipment maker. I don't know how many substantial equipment makers are out there but if I was a small to medium sized service firm, this merger might make me uncomfortable about equipment access.

    If HAL and SLB feel likewise, I'd guess we might see some industry pushback.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News