EC Oks Proposed Deal Between Baker Hughes And GE's Oil And Gas Business

(RTTNews) - Baker Hughes Inc. (BHI) and General Electric Co. (GE) said that the European Commission has cleared the proposed transaction between Baker Hughes and GE's oil and gas business under EU merger control rules. The companies remain confident in the value that the combined company will deliver to its customers, employees, shareholders and to the oil and gas industry.

Baker Hughes and GE continue to work constructively with regulators and expect to close the transaction in mid-2017.

In October 2016, General Electric announced that it entered into an agreement to combine its oil and gas business with oilfield services provider Baker Hughes.

The companies then said the deal would be executed using a partnership structure, pursuant to which GE Oil & Gas and Baker Hughes will each contribute their operating assets to a newly formed partnership. GE will have a 62.5% interest in this partnership and existing Baker Hughes shareholders will have a 37.5% interest through a newly NYSE listed corporation.

Baker Hughes shareholders will also receive a special one-time cash dividend of $17.50 per share at closing. The $7.4 billion contributed by GE to the new partnership will be used to fund the cash dividend to existing Baker Hughes shareholders.