GE buys controlling interest in Baker Hughes
GE has purchased a controlling interest in oil and gas services company Baker Hughes to bring what company officials believe will bring greater productivity solutions to the sector. Those solutions will be built on GE’s Predix platform for the Industrial Internet of Things.
Company officials announced the deal Oct. 31. Under the terms of the purchase, GE will acquire 62.5% of Baker Hughes, and has named Lorenzo Simonelli president and CEO of GE Oil& Gas.
"This transformative transaction will create a powerful force in the oil and gas market as we continue to drive long-term value for our customers and shareholders," Simonelli said in a press release. "This transaction creates an industry leader, one that is ideally positioned to grow in any market," said GE chairman and CEO Jeff Immelt in a press release. Oil and gas customers demand more productive solutions. This can only be achieved through technical innovation and service execution, the hallmarks of GE and Baker Hughes.
"As we go forward, this transaction accelerates our capability to extend the digital framework to the oil and gas industry," Immelt added. "An oilfield service platform is essential to deliver digitally enabled offerings to our customers. We expect Predix to become an industry standard and synonymous with improved customer outcomes."
The company will retain the Baker Hughes name and will begin with $32 billion in combined revenues and operations in 120 countries, according to company officials. This compelling combination brings together best-in- class oilfield equipment manufacturing and services, and digital technology offerings for the benefit of all customers and stakeholders," said Martin Craighead, Chairman and CEO at Baker Hughes. "The combination of our complementary assets will create a platform capable of seamless integration while we enhance our ability to deliver optimized and integrated solutions and increase touch points with our customers."
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