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Baker Hughes (BHI) & GE Electric Merger Gets ACCC Clearance
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The proposed merger between Baker Hughes Incorporated and General Electric Company (GE - Free Report) has been cleared by The Australian Competition and Consumer Commission (ACCC).
On Jun 12, the U.S. Justice Department approved the merger on the condition that General Electric will divest its GE Water business. The Australian regulators believe that the GE Water sale will ensure that the combined entity does not stifle competition in the market. It is to be noted that Baker Hughes and General Electric, through GE Water, are the potential suppliers of refinery process chemicals in Australia.
The companies also received merger authorization from the European Commission on May 31.
In Oct 2016, Baker Hughes and General Electric 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 combined entity is expected to have operations in more than 120 countries.
Following the deal closure, expected by the middle of this year, shareholders of Baker Hughes will likely own 37.5% of the new firm and a one-time cash dividend of $17.50 per share.
With a broader scale of products, the combined entity will be able to compete better with oilfield service majors like Schlumberger Limited (SLB - Free Report) and Halliburton Company (HAL - Free Report) . Moreover, the entity will be in a better position to brave downturns in the energy market.
Presently, the business scenario for oilfield service companies is favorable as shale players are gathering on oil plays to gather more crude. We can also say that with more exploration and production activities, there would be more contracts for the oilfield service players for efficiently setting up the wells.
Houston, TX-based Baker Hughes is one of the major oilfield service companies in the world, providing an array of services in the oil and gas industry. The one-year pricing chart shows significant strength as reflected by the company’s gain of 24.1% against almost 9% 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%.
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
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Baker Hughes (BHI) & GE Electric Merger Gets ACCC Clearance
The proposed merger between Baker Hughes Incorporated and General Electric Company (GE - Free Report) has been cleared by The Australian Competition and Consumer Commission (ACCC).
On Jun 12, the U.S. Justice Department approved the merger on the condition that General Electric will divest its GE Water business. The Australian regulators believe that the GE Water sale will ensure that the combined entity does not stifle competition in the market. It is to be noted that Baker Hughes and General Electric, through GE Water, are the potential suppliers of refinery process chemicals in Australia.
The companies also received merger authorization from the European Commission on May 31.
In Oct 2016, Baker Hughes and General Electric 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 combined entity is expected to have operations in more than 120 countries.
Following the deal closure, expected by the middle of this year, shareholders of Baker Hughes will likely own 37.5% of the new firm and a one-time cash dividend of $17.50 per share.
With a broader scale of products, the combined entity will be able to compete better with oilfield service majors like Schlumberger Limited (SLB - Free Report) and Halliburton Company (HAL - Free Report) . Moreover, the entity will be in a better position to brave downturns in the energy market.
Presently, the business scenario for oilfield service companies is favorable as shale players are gathering on oil plays to gather more crude. We can also say that with more exploration and production activities, there would be more contracts for the oilfield service players for efficiently setting up the wells.
Houston, TX-based Baker Hughes is one of the major oilfield service companies in the world, providing an array of services in the oil and gas industry. The one-year pricing chart shows significant strength as reflected by the company’s gain of 24.1% against almost 9% 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 (Strong Buy) stocks here.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>