General Electric (GE) has entered into an agreement to combine its oil and gas business with Baker Hughes to create a USD $32 B company with operations in over 120 countries. The company will combine the digital solutions, manufacturing expertise and technology from the GE Store and Baker Hughes’ expertise in the oilfield services sector. The new firm will have dual headquarters in Houston, Texas and London, UK.
GE will own 62.5 per cent stake in the new company, while Baker Hughes will hold the remaining stake. Baker Hughes Chairman and Chief Executive Officer, Martin Craighead, said: “This compelling combination brings together best-in-class oilfield equipment manufacturing and services, and digital technology offerings for the benefit of all customers”. The transaction is expected to close in mid 2017.