EU Clears GE-Baker Hughes Tie-Up
The European Commission said May 31 it has cleared unconditionally GE Oil & Gas’s takeover of drill services firm Baker Hughes, both of the US.
Although both sell competing products on specific markets, the commission concluded that the transaction would not adversely affect competition in those markets. It said the merger was officially notified to it on April 20 this year.
In a statement, GE said it and Baker Hughes continue to work constructively with regulators and expect finally to close the transaction in mid-2017.
US giant GE and smaller Baker Hughes announced exactly seven months ago their agreement to merge GE's oil and gas business and the whole of Baker Hughes to create “the second largest player in the oilfield equipment and services industry” with combined annual revenues of $32bn – with GE the 62.5% owner and Baker Hughes the other 37.5%.
Also May 31, GE said it had been chosen by Engie to upgrade two Hitachi steam turbines at the Engie-owned 1,056 MW Loy Yang B coal-fired power plant in Victoria, Australia, boosting capacity by a combined 84 MW and reducing fuel consumption by 5% for each MW generated. The upgrades are to be completed in 2019-2020.