GE Deal Offers Baker Hughes a New Beginning

GE Oil & Gas and Baker Hughes Hard Hats - Featured Image

GE Oil & Gas and Baker Hughes shocked the oil and gas world with the announcement they will come together to create the industry’s number two supplier. From a financial standpoint, the transaction is effectively an acquisition of Baker Hughes by GE. In practical terms, it’s more like a merger.

Both companies will contribute their respective businesses to a new publicly traded entity (“New” Baker Hughes). GE Oil & Gas will also contribute $7.4 billion in cash, which in turn will go to Baker Hughes shareholders in the form of a one-time dividend. GE will own 62.5% of the new company and run the overall show. Baker Hughes shareholders will own the remaining 37.5% and be represented in the boardroom with four of nine director seats. Continue reading “GE Deal Offers Baker Hughes a New Beginning”