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Baker Hughes & General Electric Merger Gets EU Clearance
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The proposed merger between Baker Hughes Incorporated and General Electric Company (GE - Free Report) has been cleared by the European Commission. The politically independent executive arm of EU has agreed that the transaction will not stifle competition in the European market, which majorly backed the condition-free approval.
In Oct 2016, the companies had signed an accord to form the world’s second largest oilfield service player. Per the deal, the oil and gas business of General Electric will merge with Baker Hughes to create a new entity – "New" Baker Hughes – which will likely rake in combined revenues of $32 billion. The new entity is expected to diversify its operations in more than 120 countries.
Following the deal conclusion, expected by the middle of this year, the shareholders of Baker Hughes will likely own 37.5% of the new firm and also a one-time cash dividend of $17.50 per share.
The merger will provide broader scale of products which will help the combined entity compete better with oilfield service majors like Schlumberger Limited (SLB - Free Report) and Halliburton Company (HAL - Free Report) . Moreover, the new company will have more strength to sustain in case of another downturn in the energy market.
Presently, the business scenario for oilfield service companies is favorable as oil has recovered from the historical lows of Feb 2016. With crude gaining ground, there will be more exploration and production activities that call for more contracts for oilfield services firms. In fact, many drilling firms have been gathering on the U.S. shale plays as revealed by the recent weekly rig count data provided by Baker Hughes.
Houston, TX-based Baker Hughes is one of the major oilfield service companies in the world, providing an array of services to the global oil and gas industry. The one-year pricing chart shows significant strength as reflected by the company’s gain of 20.1% against almost an 8% decline of the Zacks categorized Oil & Gas-Field Services industry.
However, the company’s earnings surprise history looks unimpressive with an average negative surprise of 13.48%.
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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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Baker Hughes & General Electric Merger Gets EU Clearance
The proposed merger between Baker Hughes Incorporated and General Electric Company (GE - Free Report) has been cleared by the European Commission. The politically independent executive arm of EU has agreed that the transaction will not stifle competition in the European market, which majorly backed the condition-free approval.
In Oct 2016, the companies had signed an accord to form the world’s second largest oilfield service player. Per the deal, the oil and gas business of General Electric will merge with Baker Hughes to create a new entity – "New" Baker Hughes – which will likely rake in combined revenues of $32 billion. The new entity is expected to diversify its operations in more than 120 countries.
Following the deal conclusion, expected by the middle of this year, the shareholders of Baker Hughes will likely own 37.5% of the new firm and also a one-time cash dividend of $17.50 per share.
The merger will provide broader scale of products which will help the combined entity compete better with oilfield service majors like Schlumberger Limited (SLB - Free Report) and Halliburton Company (HAL - Free Report) . Moreover, the new company will have more strength to sustain in case of another downturn in the energy market.
Presently, the business scenario for oilfield service companies is favorable as oil has recovered from the historical lows of Feb 2016. With crude gaining ground, there will be more exploration and production activities that call for more contracts for oilfield services firms. In fact, many drilling firms have been gathering on the U.S. shale plays as revealed by the recent weekly rig count data provided by Baker Hughes.
Houston, TX-based Baker Hughes is one of the major oilfield service companies in the world, providing an array of services to the global oil and gas industry. The one-year pricing chart shows significant strength as reflected by the company’s gain of 20.1% against almost an 8% decline of the Zacks categorized Oil & Gas-Field Services industry.
However, the company’s earnings surprise history looks unimpressive with an average negative surprise of 13.48%.
As a result, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>