GE in talks with Baker Hughes for possible deal
Channel: trending videos
Date: 2016-10-28

‪‪Baker Hughes‬, ‪General Electric‬‬

GE in talks with Baker Hughes for possible deal

General Electric is in talks for a possible deal with oil services provider Baker Hughes, which could result in the industrial manufacturer shedding a big portion of its energy business.

"We are in discussion with Baker Hughes on potential partnerships," GE said in a statement Tuesday. "While nothing is concluded, none of these options include an outright purchase.”

Shares of Baker Hughes rose 8% in pre-market trading to $59.01. GE rose 0.4% to $28.74.

GE, with myriad product lines include plane engines, healthcare equipment and home appliances, has been heavily marketing its self-reinvention as a digital company. With severe volatility in oil prices, GE's talks with Baker Hughes possibly involve merging their oil-and-gas businesses and spinning it off as a publicly traded company, according to The Wall Street Journal, which first reported on their talks. Their deal could be worth about $20 billion, it said.

GE declined to comment further. Baker Hughes, headquartered in Houston, declined to comment.