Baker Hughes Edges Closer to $13.6 Billion Deal with Chart Industries

Baker Hughes is reportedly finalizing a $13.6 billion cash acquisition of Chart Industries, surpassing a prior merger plan between Chart and Flowserve. The deal, expected to offer a 22% premium on Chart's shares, aims to bolster Baker Hughes' growth in the natural gas and LNG sectors.

Oil and gas equipment supplier Baker Hughes is moving toward a substantial $13.6 billion cash acquisition of Chart Industries, according to sources referenced by the Financial Times on Monday. This move overtakes an earlier merger plan Chart Industries had with Flowserve.

The previous agreement between Chart and flow control systems company Flowserve involved a $19 billion all-stock merger, but this has now been annulled. Chart's stock surged over 17% in after-hours trading after the FT's report. As of Monday's closing, Chart's market value stood at $7.71 billion, highlighting its industrial equipment offerings, including valves and measurement technology.

Baker Hughes' acquisition proposal values Chart's equity at $210 per share, representing a 22% premium to its market capitalization. This higher bid compelled Chart's board to reconsider its pact with Flowserve. While insiders suggest the deal's announcement is imminent, caution is advised as the agreement remains tentative and subj to potential changes.

(With inputs from agencies.)