General Electric merged business with Baker Hughes – Forbes Mexico

General Electric Co will merge its business area of oil and gas with the service provider to reservoirs Baker Hughes Inc.

With this, the company will have a participation of 62.5% in the new company, which will have combined revenue of 32,000 million dollars, while the shareholders of Baker Hughes will have a 37.5%.

The shareholders of Baker Hughes, which has a market value of around 26,000 million dollars, will have a dividend solely in cash of 17.50 dollars per share after the close of business, stresses the Reuters news agency.

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The agreement takes place after the merger planned for Baker Hughes with his biggest rival Halliburton Co it fell apart in may because of opposition from regulators. That business was valued at 34,600 million dollars when it was announced in November of 2014.

GE and Baker Hughes indicated that they are in talks about possible partnerships, but did not divulge details.

businesses reported Monday that they expected that the agreement will add 4 cents to the earnings per share of GE by 2018, and 8 cents to 2020.

The Wall Street journal reported on the talks between GE and Baker Hughes.

The shares of Baker Hughes rose 5.7%, to 62.50 dollars, in the operations previous to the opening of business on Monday, while the GE advanced 0.9%, 29.48 dollars.