Baker Hughes-GE megadeal receives EC approval
Baker Hughes Incorporated and General Electric Company announced on May 31st that the European Commission (EC) has cleared the proposed transaction between Baker Hughes and GE’s oil and gas business under EU merger control rules. The companies remain confident in the value that the combined company will deliver to its customers, employees, shareholders and to the oil and gas industry. Baker Hughes and GE continue to work constructively with regulators and expect to close the transaction in mid-2017.
The regulatory entity said it “concluded that the transaction would not adversely affect competition in the relevant markets” and approved the deal without conditions. The commission investigated how the deal would affect competition for onshore electrical submersible pumps, offshore electrical submersible pumps, chemicals used in the refining and petrochemicals industry, and sensors used in drilling and wireline applications.
Under the terms of the deal, GE Oil & Gas, which is based in London but has regional headquarters in Houston, and Baker Hughes will combine their operating assets to form a new USD 32 billion company listed on the New York Stock Exchange. The combined entity will be called Baker Hughes, a GE Company.
On June 5th, the two companies announced the executive team that will lead Baker Hughes upon closing of their proposed transaction to combine GE’s Oil & Gas business with Baker Hughes. Lorenzo Simonelli becomes President & CEO of Baker Hughes and as previously announced, GE CEO Jeff Immelt will serve as Chairman of the Board of Directors and Martin Craighead, currently Chairman and CEO at Baker Hughes, will serve as Vice Chairman of the Board.