Baker Hughes bets on LNG, data center demand with $13.6 billion Chart Industries deal
The deal is part of Baker Hughes' efforts to leverage its industrial and energy technology portfolio, which helped boost second-quarter earnings, and adds to the ongoing consolidation in the oilfield services and industrial supply sector.
The company has offered Chart Industries' shareholders $210 per share held, representing a premium of about 22% based on the last close. Chart Industries shares were up 16.2% at $199.50 in premarket trading.
The deal follows Chart's termination of a prior deal to merge with Flowserve, which decided not to raise its bid after being told Baker Hughes' proposal was "superior".
Shares of Flowserve, which will receive a $266 million breakup fee, were up 4.36% at $57.25 in premarket trading. Flowserve's all-stock bid valued Chart at $159.98 per share, according to Reuters calculations.
The transaction has an equity value of about $9.44 billion, according to Reuters calculation. It is expected to close by mid-year 2026.
Chart manufactures industrial equipment such as valves and measurement technology for gas and liquid molecule handling.
Baker Hughes said $325 million in annualized cost synergies were expected to be realized at end of the third year.
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