NEW YORK (AP) – General Electric and Baker Hughes are combining their oil and gas businesses to create a powerful player in an energy sector buffeted by years of weak prices.READ MORE: 'Verdict Not Justice, It's Accountability': North Texas Leaders React To Derek Chauvin Guilty On All Counts
Under the deal announced Monday, General Electric Co. will own 62.5 percent of the new company and Texas-based Baker Hughes Inc., which provides drilling services for oil and gas companies, will own the rest. Baker Hughes shareholders will receive a one-time cash dividend of $17.50 per share.
The boards of both companies have approved the deal, which is expected to close mid-2017. It still needs approval from Baker Hughes shareholders.READ MORE: Derek Chauvin Guilty On All 3 Counts In George Floyd’s Death
The new business will have dual headquarters in Houston and London.
Shares of Baker Hughes Inc. are up more than 6 percent before the opening bell, while GE’s stock is up slightly.MORE NEWS: 'They Don't Pay Attention To It Like They Used To' Warns Amber Alert Co-Founder Dee Anderson On Public Reaction
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