GE and Baker Hughes Combine Oil and Gas Business

General Electric, Inc. announced on Monday that they are combining their oil and gas business with Baker Hughes, Inc. The "new" Baker Hughes will combine GE's technology expertise and Baker Hughes' oilfield services to provide the best "physical and digital technology solutions for customer productivity." The new Baker Hughes will operate in 120 countries and has $32 billion in combined revenue. The new company is positioned to grow in any market and provide technical innovation and service execution with an expanded digital framework and oilfield service platform. GE will own 62.5% of the new company and Baker Hughes shareholders will own 37.5% of the new company. GE will contribute $7.4 billion to fund the one-time cash dividend of $17.50 to Baker Hughes shareholders. GE shareholders will benefit from a broader based, competitive business. The company will be called “the new Baker Hughes”.