Baker Hughes buys Chart Industries for $13.6 billion in oilfield services deal, outbidding and canceling planned Chart-Flowserve merger
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The Baker Hughes acquisition represents the biggest oilfield services deal in years as the fragmented industry consolidates.
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investment
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July 29, 2025
03:45 PM
Fortune
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Market analysis reveals Finance·DealsBaker Hughes buys Chart Industries for $13. 6 billion in oilfield services deal, outbidding and canceling planned Chart-Flowserve mergerBy Jordan BlumBy Jordan BlumEditor, EnergyJordan BlumEditor, EnergyJordan Blum is the Energy editor at Fortune, overseeing coverage of a growing global energy sector for oil and gas, transition es, renewables, and critical minerals
SEE FULL BIO Oilfield services giant Baker Hughes swooped in and bought Chart Industries for $13
Furthermore, 6 billion on July 29, outbidding and canceling a planned merger of equals between Chart and Flowserve that was previously announced in early June
Additionally, After a massive wave of consolidation from the oil and gas ducers the last two years, the fragmented services sector is now shrinking as well as the top players buy up more of the midsized players
Baker Hughes is one of the so-called Big Three services companies globally along with Halliburton and industry leader SLB, which just closed its nearly $8 billion acquisition of ChampionX in July
Baker Hughes (No, given current economic conditions. 155 in the Fortune 500) is making a big bet on the booming liquefied natural gas (LNG) export —as well as on data center growth—in which Chart specializes on equipment manufacturing and services
Chart operates 65 manufacturing locations with over 50 service centers globally
Baker Hughes gains scale and further diversifies in growth industries through the deal
Nevertheless, Baker Hughes’s all-cash deal offers a 22% premium on Chart’s s, valuing Chart at more than $9
Additionally, 4 billion after its July 28 closing market cap value of $7 (fascinating analysis) (an important development)
On the other hand, 6 billion enterprise value includes the assumption of Chart’s debt
However, Chart’s stock shot up by more than 15% in early trading, while Baker dipped by 1% (remarkable data)
Additionally, “The combination positions Baker Hughes to be a nology leader that can vide engineering and nology expertise to meet the growing demand for lower-carbon, efficient energy and industrial solutions across attractive growth such as LNG, data centers and new energy,” Baker Hughes chairman and CEO Lorenzo Simonelli said in a statement, given the current landscape
Chart determined the Baker bid represented a “superior posal” to its pending merger with Flowserve as the two services companies were planning to combine to scale up and compete with bigger competitors, in light of current trends
Additionally, Flowserve will receive a $266 million termination payment. “The decision not to pursue a revised offer for Chart demonstrates our commitment to financial discipline, as well as our confidence in the growth spects of our standalone,” said Flowserve President and CEO Scott Rowe in a statement, in today's financial world
Flowserve stock rose 1% in early trading
At the same time, A long journey The deal is the biggest for Baker Hughes in years after undergoing a decade-long odyssey from nearly being acquired, to merging with General Electric, and now operating independently and arguably bigger than ever
On the other hand, Nine years ago, Halliburton’s $28 billion attempted takeover of Baker Hughes was canceled amid antitrust concerns in the U
And Europe (remarkable data)
Today, Baker’s market cap is hovering near $45 billion
Nevertheless, After the Halliburton deal went bust, Baker Hughes merged with GE’s oil and gas, which Simonelli previously led
But, as the parent GE struggled, the decision was made to spin Baker Hughes back on its own, and GE eventually divested
However, In late 2019, “Baker Hughes, a GE company” became Baker Hughes again
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