Baker Hughes, GE close merger to create fullstream oil & gas company
- Business & Finance
Following approval by Baker Hughes stockholders, the transaction combining GE’s oil and gas business with Baker Hughes creating Baker Hughes, a GE company (BHGE), is now complete.
According to a Monday statement by the new company, it is the first and only to bring together equipment, services and digital solutions across the entire spectrum of oil and gas development.
BHGE is focused on providing a fullstream offering across the full value chain of oil and gas activities—from upstream to midstream to downstream.
Further, the new company is focused on combining physical and digital to increase reliability and uptime.
Lorenzo Simonelli, president and CEO of Baker Hughes, a GE company, said, “Disruptive change is the oil and gas industry’s new normal. We created BHGE because oil and gas customers need to withstand volatility, work smarter and bring energy to more people. Our offering is further differentiated from any other in the industry across the value stream and enables and assists our customers in driving productivity, while minimizing costs and risks.”
Simonelli continued, “BHGE has proven technologies and experience with the spirit of a startup, and our leadership team looks forward to quickly demonstrating the strengths of the new company. Our focus is on integrating our businesses quickly and seamlessly so we can drive long-term value for all of our stakeholders.”
Jeffrey Immelt, chairman and CEO of GE, said, “BHGE can help our customers be more productive in any cycle, especially today’s. It’s a smart deal for our combined customers, shareholders and employees. Lorenzo and his team are world-class leaders and will focus on accelerating the company’s capability to extend the digital framework in ways oil and gas customers have never seen before. The completion of the transaction marks a new era in the industry, and I am extremely proud of our team’s focus, dedication and diligence, which resulted in the completion of this combination in just eight months.”
The new company said that the integration of the Russian businesses will be completed upon receipt of Russian regulatory approval.
In numbers, the new company has around 70,000 people, operations in more than 120 countries, four product companies—Oilfield Services, Oilfield Equipment, Turbomachinery and Process Solutions, and Digital Solutions—and 24 product lines and segments.
The company has dual headquarters in Houston, TX and London, UK.
Class A common stock of Baker Hughes, a GE company, will begin trading on the New York Stock Exchange (NYSE) under the symbol BHGE on the opening of the NYSE on July 5, 2017.