Monday, October 31, 2016

More M&A Activity

Coming off a week when AT&T announced one of the biggest deals of the year to acquire Time Warner, more M&A activity headlined the news Monday morning. General Electric Co., the world’s largest oilfield equipment maker, announced it will merge its oil and gas business with Baker Hughes Inc., one of the world leaders in oil services and production. The merger will create the world’s second largest oilfield services provider behind Schlumberger and ahead of Halliburton. GE will end up owning 62.5% of the combined company and paying Baker Hughes shareholders a hefty one-time dividend as part of the deal. Looking several years ahead, GE projects to create $1.6 billion in synergies as a result of the two companies complementing each other. [more...]