67708
the combined company will have roughly $23 billion in annual revenue.
the combined company will have roughly $23 billion in annual revenue.

GE Buysout Baker, Enters Oil, Gas Investments

GE Buysout Baker, Enters Oil, Gas Investments

General Electric on Monday completed its buyout of Baker Hughes Inc, merging it with its own oil and gas equipment and services operations to create the world’s second-largest oilfield service provider by revenue.
The new company, to be called “ Baker Hughes , a GE company,” will begin trading on Wednesday on the New York Stock Exchange under the stock ticker “BHGE”, Reuters reported.
With headquarters in London and Houston, the combined company will have roughly $23 billion in annual revenue and offer oilfield gear including blowout preventers, pumps, drilling, chemicals, other products and services for oil producers in 120 countries.
For Baker Hughes, the deal helps it grow in size and become an even-more important player in the industry after antitrust concerns scuttled a tie-up last year with rival Halliburton Co. The GE deal vaults the merged business past Halliburton to rival only Schlumberger NV for dominance in the global oilfield service market.
For GE, the deal will help it focus more on the oil and gas sector, especially in North America, while shielding the parent company’s earnings from the energy industry’s boom and bust cycles. All of GE’s oil and gas-related businesses will be folded into the new company, which will be 62.5% owned by GE. Baker shareholders will own the rest and receive a one-time, $17.50 dividend.
The deal, when announced last autumn, was predicated on a recovery in the oil price to $60 per barrel by 2019, an increase that now seems less likely with a glut of crude still circling the globe and keeping prices below $50.
Still, executives at the new company said the combination should help customers better perform if prices stay lower.

 

Short URL : https://goo.gl/x7B49F
  1. https://goo.gl/29Hiq4
  • https://goo.gl/YkuGco
  • https://goo.gl/dnXJ6e
  • https://goo.gl/yzta9W
  • https://goo.gl/HYPqKj

You can also read ...

Philippines Growing Faster Than Expected
The Philippine economy grew at a faster than expected 6.9%...
The British economy will hardly expand 0.3-0.4% per quarter through to June 2018, with growth of 1.5% this year and 1.3% the next.
British economic growth will remain tepid over the coming few...
Italy Braces  for $1b Loss
Italy’s failure to qualify for the 2018 football World Cup in...
Siemens to Cut 6,900 Jobs
Labor unions have reacted angrily to layoff plans unveiled by...
The rupee, bonds and stocks rallied after Moody’s upgraded India to Baa2 from Baa3 and said reforms being pushed through by Modi’s government will help stabilize rising levels of debt.
Forget India's economic troubles this year. Moody's thinks...
Cheap ECB Cash Still Key for Eurozone
The eurozone economy remains dependent on cheap credit and the...
Smaller increases at the gas pumps helped Canada’s  annual rate of inflation ease in October.
Canada›s rate of inflation came in at 1.4% on a year-over-year...
Norway’s $1 Trillion Wealth Fund Plans Divesting From Oil, Gas
Norway’s trillion-dollar sovereign wealth fund is proposing to...

Add new comment

Read our comment policy before posting your viewpoints

Image CAPTCHA
Enter the characters shown in the image.

Trending

Googleplus