Related Articles
Forward article link
Share PDF with colleagues

Baker Hughes shareholders do maths over GE deal

General Electric's plan to merge its oil and gas division with Baker Hughes should be a boon for the oilfield services company amid testing times for the sector. But Baker Hughes shareholders may need some convincing

While global oil and gas M&A activity remains lacklustre one of the world's largest conglomerates is bucking the trend by planning to merge its oil and gas division with oilfield services provider Baker Hughes. If the $32bn deal, which is expected to close next year, goes ahead General Electric (GE) will take a 62.5% stake in Baker Hughes, paying $7.4bn to fund a one-time cash dividend of $17.50 per share to the oilfield services firm's existing shareholders. Baker Hughes, which will retain the remaining 37.5% share, will become the world's second largest oilfield equipment and services firm. Schlumberger remains the largest, in terms of market capitalisation, while Halliburton will sl

Also in this section
Saudi Arabia pushes ahead with IPO
22 March 2017
The state firm is making the right noises about its privatisation, but the clock is ticking and market fundamentals could still shift
An M&A lifeline in the North Sea
15 March 2017
Assets that cut tax bills could be a blessing for UKCS operators looking for a bargain
Depth, breadth and data
15 March 2017
Fresh from the merger with Baker Hughes, GE Oil & Gas boss tells Petroleum Economist about his firm's plans for digital analysis, cost-cutting and recovery