U.S. asks for more information on Baker Hughes-GE merger
General Electric Company (GE) and Baker Hughes have each received a request for additional information from the United States Department of Justice (DOJ) in connection with the pending combination of GE’s oil and gas business with Baker Hughes.
The two companies announced their agreement to combine GE Oil & Gas and Baker Hughes to create the second largest oilfield technology provider back in October last year. The “New” Baker Hughes will be an equipment, technology and services provider in the oil and gas industry with $32 billion of combined revenue and operations in more than 120 countries.
The second requests were issued under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (HSR Act).
According to their joint press release on Monday, GE and Baker Hughes have been working cooperatively with the DOJ as it conducts its review of the transaction.
The second requests were expected and are a normal part of the DOJ review process, the statement further said. The effect of the second requests is to extend the waiting period imposed by the HSR Act until 30 days after GE and Baker Hughes have substantially complied with the requests, unless that period is extended voluntarily by the parties or terminated sooner by the DOJ, the companies said.
The transaction remains subject to approval by Baker Hughes’ shareholders and other approvals, as well as customary closing conditions. GE and Baker Hughes expect the transaction to close in mid-2017.