Baker Hughes Poised to Acquire Chart Industries for $13.6 Billion

HOUSTON, Texas — Baker Hughes, a leading oil and gas equipment supplier, is close to finalizing a $13.6 billion cash acquisition of Chart Industries. The deal, which may be announced within days, reportedly outpaces a bid from Flowserve, another suitor for Chart, according to a report by the Financial Times.

Baker Hughes is aiming to expand its footprint in the natural gas and LNG sectors. CEO Lorenzo Simonelli is steering the company towards the global energy transition by offloading non-core assets and investing in sustainable energy options.

This latest development marks a shift from earlier plans for a $19 billion all-stock merger with Flowserve, which has now been scrapped, the FT notes. The U.S. energy sector has seen a flurry of activity, resulting in $250 billion worth of deals in 2023, though there has been a noticeable slowdown in recent months.

As for Chart Industries, the firm specializes in manufacturing industrial equipment, including valves and technologies for handling gas and liquid molecules. On July 29, Chart’s stock, which concluded at $171.65, surged over 17% to $202 during after-market trading, reflecting investor optimism.

The proposed deal would value Chart’s equity at $210 per share, providing a 22% premium over its market value and estimating the company’s equity at approximately $10 billion, the FT reported.

Baker Hughes’ higher offer compelled Chart’s board to reassess its previous agreement with Flowserve, pushing the negotiations towards a potential conclusion.