As of today, BHGE will help its customers acquire, transport and refine hydrocarbons in a more efficient, productive and safe way, with a lower environmental impact and at a lower cost per barrel.
The new company has a unique position to boost productivity, reduce costs and present innovations globally for customers.
LONDON AND HOUSTON, July 3, 2017. Baker Hughes, a GE company (NYSE: BHGE) announced today that the transaction to combine GE’s oil and gas business with Baker Hughes has been completed. The new company is the first and only one to bring together leading digital equipment, services and solutions across the entire spectrum of oil and gas development.
As of today, BHGE will help its customers acquire, transport and refine hydrocarbons in a more efficient, productive and safe way, with a lower environmental impact and at a lower cost per barrel. BHGE’s focus will be on:
Provide a fullstream offer. No other company gathers competencies throughout the entire value chain of oil and gas activities – from upstream, through misdtream to downstream. This offer of competencies positions BHGE to create new sources of value, by improving the productivity and profitability of projects through offers of integrated equipment and services.
Combine physical and digital resources to increase reliability and uptime. The application of advanced and digital technologies to the oil and gas sector can bring about five percent improvements in productivity throughout the industry. BHGE will use digital cloud-based software, advanced manufacturing and Brilliant Factory solutions to help its customers capture a part of this opportunity — reducing risk and improving productivity in their clients’ operations as well as their own.
Create new ways to win. BHGE’s cutting-edge technology and access to the knowledge, experience and research of the GE Store means that the company can provide new solutions to reach the market faster. It deepens its competitive advantage through its lasting relationships and creative business models and access to financing.
Build a heritage to create a world class culture. BHGE combines more than 125 years of experienced talent in the industry with a continuous improvement mindset to serve its customers in more than 120 countries. Both Baker Hughes and GE have globally recognized commitments towards integrity, innovation, simplification and diversity; and BHGE is again committed to these principles.
Lorenzo Simonelli, President and CEO of Baker Hughes, told GE company: “Disruptive change is very normal in the oil and gas industry. We created BHGE because customers in this industry need to overcome volatility, work smarter and provide energy to more people. Our offer for customers is now different from any other in the industry. BHGE is a new company that has more than a century of experience and is based on the invention, execution and quality of our human resources and our culture. ”
Mr. Simonelli added: “We are eager to quickly increase customer productivity and, at the same time, minimize costs and risks. BHGE has proven technology and experience and has the spirit of a new company; Our leadership team wants to quickly demonstrate the strengths of the new company. We focus on integrating our business activities quickly and constantly in order to generate long-term value for all our shareholders. ”
Jeffrey Immelt, President and CEO of GE, said: “BHGE is a leader in the industry and is perfectly positioned to develop in any economic environment. Lorenzo and his team are world class leaders and will focus on accelerating the company’s ability to extend the digital framework in ways never seen by customers in the oil and gas industry. The completion of the transaction marks a new era in the industry and I am extremely proud of the focus, dedication and diligence of our team, which led to the culmination of this project in just eight months. ”
The integration of Russian companies will be completed upon receipt of Russian regulatory approval.
Ready for success
The global BHGE organization is designed to achieve business continuity, minimize disruptions and meet and exceed performance objectives. It offers a global scale and adapts its capabilities to the local needs of its customers. In numbers, it is reflected as follows:
~ 70,000 people
Operations in more than 120 countries
Four product companies: Oilfield Services, Oilfield Equipment, Turbomachinery Solutions and Processes, and Digital Solutions; and 24 product lines and segments
Double headquarters in Houston, TX and London, UK
Click here to access a visual of the company.
Its highly experienced executive team, which is based on the talent and experience inherent in the two predecessor companies, is well positioned to guide and support the organization to achieve success. As previously announced, GE President Jeff Immelt serves as Chairman of the Board of Directors of Baker Hughes, a GE company, and Martin Craighead, former President and Chief Executive Officer of Baker Hughes, is the Vice President of the Board.
Click here to learn more about executive leadership and management teams.
Marketing on the Stock Exchange
A class A ordinary share of Baker Hughes, to GE company will begin trading on the New York Stock Exchange (NYSE) with the symbol BHGE at the opening of the NYSE on July 5, 2017. In relation to the completion of the transaction, the common shares of Baker Hughes Incorporated (NYSE: BHI) will continue to be traded on the NYSE until the close of the NYSE today, July 3, 2017; at that time, BHI will be off the NYSE list.
The shareholders of Baker Hughes immediately before the closing of the transaction will receive an ordinary Class A share of Baker Hughes, to GE company and will also be entitled to receive a special cash dividend of $ 17.50 per share (to be paid on 6 July 2017). After the closing of the transaction and during the current trading day of the NYSE, July 3, 2017, Baker Hughes will be listed on the NYSE with the value of the special single cash dividend of $ 17.50 per share. As a result, a person who acquires an ordinary Baker Hughes action after closing Error! Unknown document property name. of the transaction on July 3, 2017, he would be acquiring the right to receive a class A ordinary share of Baker Hughes, a GE company and the right to receive the special single cash dividend of $ 17.50. On the contrary, a person who sells an ordinary Baker Hughes share until July 3, 2017 included would be selling such rights and would not receive the unique cash dividend of $ 17.50 in respect of such action. For information on the transaction, shareholders can visit the investors page at www.investor.bhge.com
At a glance
About our brand
GE Reports story
BHGE Investor Relations
About Baker Hughes, a GE company
Baker Hughes, a GE company (NYSE: BHGE) is the world’s first and only fullstream provider of digital solutions, services and integrated products for oil fields. We deploy minds and machines to improve customer productivity, safety and environmental management and, at the same time, minimize costs and risks at every step of the energy value chain. With operations in more than 120 countries, we instill over a century of experience the spirit of a new company: inventing smarter ways to supply energy to the world.
Visit us at BHGE.com.
Relationships with communication media:
Philipp Mueller, +1 281 809 9088, [email protected]
Forward-looking statements related to caution:
This document contains “forward-looking statements,” that is, statements related to future events, not past. In this context, forward-looking statements often address our expected financial condition and our expected future commercial and financial performance and often contain terms such as “expect”, “anticipate”, “intend to”, “plan”, “Believe”, “search”, “see”, “we will”, “we would”, “estimate”, “forecast” or “direct”.
The forward-looking statements by their nature address issues that are, to varying degrees, uncertain, such as statements about our future growth, our future offers of products and services and their performance, and the integration of GE Oil & Gas and Baker Hughes.
In our opinion, the particular uncertainties that could make our actual results materially different from those expressed in our forward-looking statements include the Error! Unknown document property name. following: (1) unforeseen costs, charges or expenses resulting from the combination of GE Oil & Gas and Baker Hughes; (2) uncertainty about the expected financial performance of BHGE after the end of the combination; (3) inability to receive the anticipated benefits of the combination, as a result of the delay in integrating the commercial activities of GE Oil & Gas and Baker Hughes; (4) BHGE’s ability to implement its commercial strategy; (5) difficulties and delays to achieve synergies of income and costs of BHGE; (6) inability to retain and hire key personnel; (7) the risk that litigation of the shareholders in relation to the combination or other agreements or investigations may cause significant costs in defense, compensation and liability; (8) creation of legal, regulatory and tax regimes; (9) changes in the general economic and / or sector conditions, including changes in the price of oil; (10) actions by third parties, including government agencies; (11) the risk factors in the section entitled “Risk Factors” of the Registration Statement on Form S-4 (file number 333-216991) initially filed in the Securities and Exchange Commission, SEC) of the United States on March 29, 2017, which was declared effective on May 30, 2017; and (12) other risk factors periodically detailed in the BHGE reports filed in the SEC. These and other uncertainties may make our future actual results materially different from those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.
Our public communications and documents filed in the SEC may include certain projected financial information prospectively based on our estimates and our current forecasts. Actual results may differ materially.