8-KRegulation FDOther EventsExhibits & Filings

GENERAL ELECTRIC CO 8-K Report, Regulation FD Disclosure (Jul 3, 2017)

Filed July 3, 2017For Securities:GE

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.

Frequently Asked Questions

This filing marks the completion of a major strategic transaction where GE combined its Oil & Gas business with Baker Hughes. This creates a new, publicly traded company, Baker Hughes, a GE company (BHGE), in which GE retains a majority stake. This is a key event for GE investors as it reshapes the company's structure and portfolio.

GE will own 62.5% of the new combined company, Baker Hughes, a GE company. This means GE retains a controlling interest in the oil and gas venture.

GE will likely continue to consolidate the results of Baker Hughes, a GE company, into its financial statements due to its majority ownership. Investors will need to monitor GE's reporting for details on the financial performance of the combined entity and its impact on GE's overall results.

GE contributed $7.4 billion in cash along with its Oil & Gas business to form the new combined entity.