GE and Baker confirm merger activities in the oil and gas sector

 

According to statement, the merger of operations will create a "world leader" in the provision of services in oilfields, with physical and digital technology solutions to customers ' productivity. Under the terms of the agreement, unanimously approved by the boards of Directors of both companies, at the closing of the transaction, shareholders of Baker Hughes will receive an extraordinary special dividend $17.50 per share, plus 37.5% of the company generated from the merger. GE, in turn, will take a slice of 62.5%.

"GE's investors will benefit from a stronger business, with substantial synergies and improved competitive position. The transaction will add approximately $0.04 to earnings per share of GE in 2018 and $0.08 in 2020, "said Jeff Immelt, GE's ceo, in a statement.

The President of the company generated from the combination of GE and Baker Hughes will be Lorenzo Simonelli, currently Chief Executive Officer of GE oil & gas. The companies expect the synergies generated by a merger go away $1.6 billion in 2020. The deal should be closed in mid-2017.

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