Summary
General Electric Company (GE) announced a significant strategic transaction to combine its Oil & Gas business with Baker Hughes Incorporated. This transaction will create a new, publicly listed partnership where GE will hold a 62.5% stake and existing Baker Hughes shareholders will own 37.5%. The structure involves GE Oil & Gas and Baker Hughes contributing their operating assets to this new entity. As part of the deal, Baker Hughes shareholders will receive a special one-time cash dividend of $17.50 per share, which GE will fund with a $7.4 billion contribution to the partnership. This move signals GE's intent to reshape its portfolio and focus on core industrial competencies. The transaction is subject to customary closing conditions, including shareholder and regulatory approvals.
Key Highlights
- 1GE is combining its Oil & Gas business with Baker Hughes to form a new partnership.
- 2GE will hold a 62.5% ownership stake in the combined entity, with Baker Hughes shareholders holding 37.5%.
- 3Baker Hughes shareholders will receive a special one-time cash dividend of $17.50 per share.
- 4GE will contribute $7.4 billion to fund the cash dividend to Baker Hughes shareholders.
- 5The transaction is structured as a partnership, with both entities contributing operating assets.
- 6The deal is contingent on approval from Baker Hughes shareholders and regulatory bodies.