Once the customary closing conditions are either satisfied or waived, the transaction to combine Baker Hughes and GE Oil & Gas will close today, Monday July 3. More than 99% of the Baker Hughes stockowners that voted in a special meeting in Houston, voted for the approval of the merger. So far roughly 86% of Baker Hughes stockholders have already voted, and the final tally will be filed on a Form 8-K with the Securities and Exchange Commission.
The new company will be Baker Hughes, a GE company and the new Class A common stock will trade on the New York Stock Exchange (NYSE) with the ticker symbol “BHGE.” Current Baker Hughes common stock will be delisted at the close of business today, and the new stock will begin trading on Wednesday, July 5, 2017.
In a statement about the merger, president and chief executive officer of GE Oil & Gas, Lorenzo Simonelli said, “I want to congratulate Baker Hughes on this approval and thank Martin and the Baker Hughes team for their exceptional partnership. In just eight months, our teams have worked around the clock to create a new company that will deliver a differentiated offering for our customers, incredible opportunities for our combined employees and value creation for shareholders.”
The two companies announced the approval of the Department of Justice for the merger on June 12. The transaction between Baker Hughes and GE Oil & Gas complies with all applicable U.S. laws.
One condition in the proposed consent decree that was filed in District Court states that General Electric must sell its GE Water & Process Technologies business after closing the merger transaction. GE previously announced in March that they agreed to sell GE Water to the French utility company Suez for $3.4 billion.
Both companies also received clearance with no conditions from the European Commission.
Baker Hughes, a GE company will be the first and only fullstream oil and gas company, helping its customers acquire, transport, and refine hydrocarbons efficiently, productively, and safely. The new company will also have a smaller environmental footprint while maintaining a lower cost per barrel.
The chairman and chief executive officer of Baker Hughes, Martin Craighead, commented on the merger, “Today’s results are an important milestone in our efforts to build the leading oil and gas fullstream company, uniquely positioned to achieve the productivity gains the industry needs. This compelling combination brings together best-in-class oilfield technology and services, manufacturing capabilities and digital offerings for the benefit of all customers and stakeholders. As we approach the close, I want to thank all of the Baker Hughes employees for their commitment and hard work throughout the integration planning process as well as the talented team at GE Oil & Gas. I am more confident than ever in the promise of the new company and the benefits it will bring.”
Article written by HEI contributor Raymond Arrasmith.