Baker Hughes nears $13.6 billion deal to acquire Chart Industries
Baker Hughes (NASDAQ: BKR) is close to finalizing a $13.6 billion all-cash acquisition of Chart Industries (NASDAQ: GTLS), edging out a previous $19 billion all-stock merger agreement Chart had signed with Flowserve.
The agreement, which could be announced within days, would mark one of the largest recent transactions in the U.S. energy sector. However, sources cautioned that the deal is not yet finalized, News.Az reports, citing Reuters.
The potential Baker Hughes–Chart transaction forced Chart to terminate its June agreement with Flowserve, which had aimed to combine two leaders in industrial flow control and gas technology.
Chart shares surged more than 17% in after-hours trading, rising from Monday’s close of $171.65 to $202, after reports surfaced that Baker Hughes would pay $210 per share—a 22% premium valuing Chart’s equity at around $10 billion. The total enterprise value of the deal, including debt, is estimated at $13.6 billion.
Baker Hughes has been reshaping its portfolio under CEO Lorenzo Simonelli, shedding non-core operations and focusing on cleaner energy solutions and LNG infrastructure, in line with global energy transition trends.
The acquisition of Chart—known for manufacturing industrial equipment for handling gases and liquids, including valves and measurement systems—would significantly strengthen Baker Hughes' industrial gas and liquefied natural gas capabilities.
The deal comes amid ongoing consolidation in the U.S. energy and industrial sectors. While $250 billion in mergers and acquisitions were recorded in the space during 2023, activity had slowed through the first half of 2024.
Neither Baker Hughes nor Chart Industries commented on the report, while Flowserve also declined to respond to media inquiries.
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