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: Dallas Police Seized $100K In Cash From Love Field Traveler Using Civil Asset Forfeiture
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: Mansfield ISD Police Determine Social Media Threat To James Coble Middle School Not Credible
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: Austin's SXSW Film Festival Returns In-Person In March 2022
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