A compelling, transformational combination
๏ผ The best partner to Oil & Gas customers โฆ offering solutions based on
complementary equipment & services technology across the full spectrum
of the oil and gas value chain
๏ผ More innovative solutions to market faster and more cost effectively โฆ
Baker Hughesโ leading products and services with GE Oil & Gas highly
differentiated manufacturing capabilities
๏ผ Best-in class physical + digital technology โฆ combine Baker Hughes
domain expertise, technology and culture of innovation with GE Store and
GE industry-leading Digital Platform
๏ผ Value creation for customers and shareholders โฆ positioned to weather
short-term volatility and participate in industry upcycle
Impact for Baker Hughes shareholders
๏ผ Ongoing ownership in a stronger, more competitive
business
๏ผ Cash dividend of $17.50 per share equal to 30%+ of
undisturbed share price
๏ผ Participation in substantial value creation through
synergies
๏ผ Revenue growth driven by increased customer touch
points
Deal overview
Merge GE Oil & Gas with Baker Hughes โฆ GE owns 62.5%, new Baker Hughes owns 37.5%
+ Create new, publicly traded company with separate investor base
+ GE to contribute $7.4B to fund cash dividend to Baker Hughes shareholders upfront
+ Close expected mid-2017 … ~$.04 accretive to GE EPS in 2018
Combination of GE Oil & Gas & Baker Hughes establishes a new industry leader
+ 2x scale, complementary capabilities, more diversified
+ Can weather the cycle in short term & over time; significantly levered to recovery
Platform is positioned to deliver substantial customer value
+ Technical solutions ๏ productivity
+ Best digital platform
+ Global execution
Synergy opportunity is substantial โฆ cost and revenue
+ ~$1.6B synergies (~$1.2B cost & ~$0.4B revenue)
Disciplined capital allocation โฆ O&G long-term fit for GE
+ Essential industry & fits GE Store
Efficient transaction structure using like-for-like equity with modest cash outlay
including disposition proceeds
See More about this transaction
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