Baker Hughes Nears $13.6B Chart Industries Acquisition Amid Energy Sector Wave

Baker Hughes is close to agreeing on a $13.6 billion cash deal to acquire Chart Industries, surpassing a previously planned merger between Flowserve and Chart. The acquisition is part of Baker Hughes' strategy to expand in the natural gas and LNG sectors during a period of industry consolidation.

Baker Hughes, a prominent oil and gas equipment supplier, is reportedly on the brink of finalizing a $13.6 billion cash purchase of Chart Industries, outbidding Flowserve in the process. This acquisition, likely to be announced soon, marks a significant move for Baker Hughes in the highly competitive energy sector.

Under CEO Lorenzo Simonelli's leadership, Baker Hughes aims to leverage its industrial and energy technology capabilities to expand its footprint in the natural gas and LNG markets. This strategic shift aligns with the company's broader efforts to shed non-core assets and invest in cleaner energy solutions amidst a global energy transition.

The potential deal highlights an ongoing wave of consolidations in the U.S. energy sector, which saw $250 billion in agreements this year. Chart Industries' stock surged following news of the potential acquisition, reflecting the market's positive reception to Baker Hughes' $210 per share offer—a premium over Chart's market value.

(With inputs from agencies.)