GE to merge oil unit with Baker Hughes to create service giant - best electric toothbrush to buy

(Reuters)-
General Electric Corporation (GE. N)
Monday said it would merge its oil and gas operations with Baker Hughes.
Second in the world-
As competition intensifies, the largest provider of oilfield services will provide more
After several years of low crude oil prices, efficient products and services in the energy industry.
The deal, which generates $32 billion in annual revenue, will combine GE's strengths in long-term production of equipment.
Baker Hughes's expertise in drilling and fracturing new wells is valued by oil producers.
Baker Hughes's share price has fallen nearly 7%, and executives say it could be due to the complex trading structure.
"This is a good deal for all investors," said Lorenzo Simon Neilly, head of GE's oil and gas operations, who will lead the company called "Baker Hughes, a GE company.
GE is already the world's largest manufacturer of oilfield equipment, supplying blowout preventers, pumps and compressors for exploration and production.
Just as the oil industry is concerned about its potential to boost oil recovery, GE is also investing heavily in big data processing services.
By contrast, Baker Hughes is considered one of the world leaders in horizontal drilling, chemicals for frack, and other service areas critical to oil production.
The new company will surpass its rival, Harry Burton, for market share in Baker Hughes. HAL. N)
Prior to the collapse of the deal in last May, Baker had been trying to acquire Baker, but failed, and also with slumberger NV (SLB. N)
The world's largest oil field service provider provides services to its customers.
Following the breakdown of the Burton agreement, Simon Neely called Baker CEO Martin Clegg head to seek some sort of business mix, and over time the negotiations also evolved with the announcement on Monday.
"Lorenzo (Simonelli)
Or I need to do that.
"We all followed the fiduciary responsibility," Craighead said in an interview . ".
GE will own 62.
New public 5%traded company.
The deal is expected to end in the medium term2017.
GE will have to pay $1.
3 billion to Baker Hughes, if the deal did fail, it would be another windfall for Baker Hughes after he was forced to pay $3.
Earlier this year, when the merger of these companies collapsed, 5 billion.
For the graphics for the merge of GE and Baker Huges, click tmsmrt.
Rs/2e5Y3xa "we don't expect anything like what we had before," Craighead said, stressing that he expects GE's cooperation
Blessed by regulators.
According to sources close to the company, General Electric and Baker Hughes will contact the Justice Department and European antitrust enforcers on Monday.
GE will debate antitrust enforcers
Just a few months ago, the deal was stopped by Burton and Baker Hughes.
The sources say their deals are complementary and they are committed to any remedy needed to obtain approval.
A small part of GE's business is selling equipment to Baker Hughes's competitors and will continue to sell it, sources said.
Simonelli said all GE's oil and gas operations will enter the new company, which generates about 14% of GE's revenue, while the former parent company of the latter does not leave any energy sector behind.
He added that the "best performance" of existing General Electric and Baker Hughes would form a new management team, refusing to comment on potential layoffs.
Analysts said there was little overlap between businesses that worried regulators.
"I don't see any overlap, significant overlap," said Tom Seng, an energy industry veteran who teaches at Tulsa University.
The deal is close to North American oil and gas producers-
Activity freeze due to plunging oil prices2014.
But GE Chief Executive Jeff Immelt told investors on Monday that the deal was based on expectations that oil prices would rise to $60 a barrel by 2019.
"This is a very high-profile moment for the deal," Immelt said . " He noted that he expected $1.
Save 6 billion of the cost by 2020.
Global oil prices have risen third this year to nearly $50 a barrel.
Craighead, who is about to become vice chairman of the new company, also expressed Immelt's confidence.
"We see growth in any market environment," Craighead said in an interview . ".
"Our customers continue to spend a lot of money.
"The whole industry's efforts to extract more oil and gas at a cheaper cost will only accelerate this trend," he said.
Trian Fund Management owns Nelson Peltz, a radical investor in about 0 funds.
As of June 30, 8% of GE's shares told CNBC that the new company would be able to "nose-to-
Snoenberg's nose.
Shareholders of Baker Hughes, which has a market capitalization of about $26 billion as of Friday, will receive a special report --
GE's time cash dividend was $17. 50 per share -or $7. 4 billion -
After the transaction.
The new company, which will be listed on the New York Stock Exchange, will have dual headquarters in Houston and London.
Baker Hughes shares rose 5% in early trading, after falling nearly 8% at $54. 60.
GE shares fell 0.
$ 1% to $29. 18.
Centerview Partners and Morgan Stanley provide legal advice to GE, with Shearman & Sterling as their legal counsel.
Goldman Sachs & Co is a financial adviser to Baker Hughes and Davis Polk is a legal adviser.