Baker Hughes completes merger with GE’s oil unit

US-based Baker Hughes Incorporated (BHI) on Monday completed its merger with the oil and gas division of General Electric (GE) to create the world’s second biggest oilfield services firm, the company said in a statement. 

Baker Hughes, a GE company, has about 70,000 employees, operations in more than 120 countries, four product companies—Oilfield Services, Oilfield Equipment, Turbomachinery and Process Solutions, and Digital Solutions—and 24 product lines and segments.

The new company, which will have dual headquarters in Houston and London, will debut on the New York Stock Exchange under the ticker symbol BHGE on July 5, while BHI will be delisted.

It will be led by Lorenzo Simonelli, current chief executive of GE Oil & Gas.  

BHGE will help its customers acquire, transport and refine hydrocarbons more efficiently, productively and safely at lower cost per barrel.

“We created BHGE because oil and gas customers need to withstand volatility, work smarter and bring energy to more people. Our offering is further differentiated from any other in the industry across the value stream and enables and assists our customers in driving productivity, while minimizing costs and risks,” Lorenzo Simonelli, president and CEO of Baker Hughes, a GE company said.

Existing Baker Hughes shareholders will receive a special cash dividend of $17.50 per share to be paid on July 6.

The deal, which was approved last October, is aiming to save costs of $1.2 billion annually and generate annual revenue synergies of $400 million by 2020.