The “new” Baker Hughes will provide equipment, technology and services to the oil industry and GE will own 62.5 percent of the publicly traded company, the two companies said today. The transaction is expected to close in mid 2017.
The combined company will create the second-largest player in the oilfield services industry in terms of revenue after Schlumberger, Business Insider reports.
“It’s got a diversified portfolio that can weather the cycles better than anybody,” GE chief executive officer Jeffrey Immelt told Bloomberg.
Baker Hughes had planned to combine Halliburton in a $34.6 billion deal but the acquisition fell through.
Also today, GE confirmed it is exploring options for selling its water and process technologies business. In a statement, the company said the “plan to divest the water business is a strategic decision that provides an opportunity to reposition the business for growth and further invest for long-term success.”
GE said it hopes to complete the sale of its water business by mid-2017.