- Baker Hughes (BHGE) and General Electric (GE) announce a series of long-term agreements that amend the commercial and technological relationships between the two companies.
- BHGE and GE will form a joint venture on critical rotating equipment, including aeroderivative and heavy-duty gas turbine technology.
- BHGE also enters into long-term supply and distribution agreements with GE for heavy-duty gas turbine technology at current pricing levels.
- BHGE and GE Digital agree to extend their exclusive supplier relationship for digital oil and gas applications.
- The two companies also say they will cooperate on a proposed sale by GE of part of its stake into the market and to a concurrent repurchase of another part of GE’s stake by BHGE; together, the transactions are expected to maintain GE’s stake in BHGE above 50%.
- "Earlier this year we announced our intent to pursue an orderly separation from BHGE," says GE Chairman and CEO Lawrence Culp." The agreements announced today accelerate that plan in a manner that mutually benefits both companies and their shareholders."
- BHGE -2.7%; GE +1.8% pre-market.