GE plans to split from Baker Hughes

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GE plans to split from Baker Hughes

Thu, 07/05/2018 - 10:14
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GE plans to split from Baker Hughes
GE plans to split from Baker Hughes

Despite the fact that Baker Hughes just recently joined the General Electric group, the financially struggling American company publicly announced its intention to separate from Baker Hughes in the next two or three years.

The reason for this move lies in the intention of GE to focus on its more profitable branches aviation, power and renewable energy. GE will therefore separate from its branches health care and transportation. The decision came after the company has undergone an internal strategic review. Because Baker Hughes has got a two-year-lockup-agreement with General Electric, the split is not likely to be finalized until 2020.

The announcement is only partially a surprise, since GE's CEO John Flannery said in the past, shortly after the merger, that he will seek ways out of the deal. Flannery was appointed CEO in August 2017, long after the merger was a done deal.

Baker Hughes remains optimistic about the split. The company has benefits regarding the access to GE's technologies and a favorable market position, as a company spokesperson stated.

Comments

Submitted by Bryan Melan (not verified) on Tue, 07/24/2018 - 17:47 Permalink

I only wish this could happen sooner. BH has tremendous potential and GE has only been a boulder weighing them down since the merger.

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