GE’s oil and gas business and supplier of oilfield services, products, technology and systems Baker Hughes are combining to create an oilfield technology company.
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.
By drawing from GE’s technology expertise and Baker Hughes capabilities in oilfield services, the new company will provide physical and digital technology solutions to enhance productivity.
Under the agreement GE will own 62.5 per cent of the company with Baker Hughes holding 37.5 per cent.
“This transaction accelerates our capability to extend the digital framework to the oil and gas industry,” Jeff Immelt, chairman and CEO of GE, said.
Martin Craighead, Baker Hughes chairman and CEO said, the combination will create a platform capable of seamless integration and will increase the company’s ability to deliver integrated solutions and increase touch points with their customers.
“With employees of Baker Hughes and GE Oil & Gas coming together, the new company will be an industry leader, well-positioned to compete in the oil and gas industry while pushing the boundaries of innovation for our customers,” he said.