GE, Baker Hughes face questions on merger
Multinational 
HOUSTON, March 7, 2017 – The US Department of Justice has requested additional information about the planned merger of Baker Hughes with GE’s oil and gas arm, the companies said in a statement on Monday.
The waiting period for the regulatory review has also been extended until 30 days after the firms file the information requested, though it could be cut short on the DOJ’s discretion or extended further on the two companies’ request.
While an earlier merger between Baker Hughes and Halliburton planned for last year was cancelled due to anti-trust concerns, Baker Hughes and GE said that the DOJ request for additional information was “normal” and “expected.”
“GE and Baker Hughes have been working cooperatively with the DOJ as it conducts its review of the transaction,” the press release said. “GE and Baker Hughes expect the transaction to close in mid-2017.”
Hit by low oil and gas prices, Baker Hughes posted a USD 2.7-billion net loss last year, after a USD 2-billion loss in 2015.
In order to avoid regulatory charges and the scenario that brought down the Baker Hughes-Halliburton merger last year, GE is planning to sell its water arm, Bloomberg reported on March 6.
Read our latest insights on:
More content from Multinational
Latest news and features
