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- Baker outbids Flowserve to buy Chart
- Baker offers $210/shr, about 22% premium
- Expects $325 million in annual cost synergies in third year
July 29 (Reuters) – Oilfield services firm Baker Hughes (BKR.O) said on Tuesday it would buy Chart Industries (GTLS.N) in a $13.6 billion all-cash deal, including debt, outbidding rival Flowserve (FLS.N) to expand in the LNG, data centers and decarbonization segments.
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The deal is part of Baker Hughes’ efforts to leverage its industrial and energy technology portfolio, which helped boost second-quarter earnings, and adds to the ongoing consolidation in the oilfield services and industrial supply sector.
“The deal could check some notable strategic boxes for Baker, including increased industry diversification, higher aftermarket services revenue, and margin accretion,” said RBC Capital Markets analyst Keith Mackey.
Baker has offered Chart Industries’ shareholders $210 per share held, representing a premium of about 22% based on the last close.
Chart Industries shares jumped nearly 16% to $198.68, while Baker was down 3% at $45.09 in early trading.
“The acquisition expands our offerings in core customer sectors while broadening our exposure to high-growth markets and strategic industrial segments like metals and mining,” Baker Hughes CFO Ahmed Moghal said on a conference call.
The transaction has an equity value of about $9.44 billion, according to Reuters calculation. It is expected to close by mid-year 2026.
The deal follows Chart’s termination of a prior deal to merge with flow control systems maker Flowserve, which decided not to raise its bid after being told Baker Hughes’ proposal was “superior”.
Shares of Flowserve, which will receive a $266 million breakup fee, were up 6.7%.
Flowserve’s all-stock bid valued Chart at $159.98 per share, according to Reuters calculations.
Chart manufactures industrial equipment such as valves and measurement technology for gas and liquid molecule handling and operates 65 manufacturing locations with over 50 service centers globally.
Baker Hughes said $325 million in annualized cost synergies were expected to be realized at end of the third year, with half from lower selling, general and administrative expenses.
Reporting by Tanay Dhumal in Bengaluru; Editing by Sriraj Kalluvila
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