Summary
General Electric Company (GE) announced the completion of the previously disclosed combination of its Oil & Gas business with Baker Hughes Incorporated on July 3, 2017. This strategic transaction creates a new entity named Baker Hughes, a GE company, which will be publicly traded on the New York Stock Exchange under the ticker symbol BHGE. GE contributed its Oil & Gas division and $7.4 billion in cash to this combined venture, receiving a 62.5% ownership stake in return. This move represents a significant step in GE's portfolio transformation, aiming to streamline operations and focus on its core industrial businesses. Investors should note the creation of a new, publicly traded entity that will house the combined oil and gas assets, with GE retaining a majority interest. The financial implications and future performance of this new entity will be closely watched as it operates as an independent, publicly listed company.
Key Highlights
- 1Completion of the combination between GE's Oil & Gas business and Baker Hughes Incorporated.
- 2The new combined company is named Baker Hughes, a GE company.
- 3The new company will be listed on the New York Stock Exchange under the ticker symbol BHGE.
- 4GE contributed its Oil & Gas business and $7.4 billion in cash to the new entity.
- 5GE will hold a 62.5% ownership interest in the combined company.
- 6The transaction was completed on July 3, 2017, pursuant to agreements dated October 30, 2016, and amended on March 27, 2017.