GE to merge oil and gas business with Baker Hughes

Idle oil equipment is seen in a Baker Hughes yard in Williston, North Dakota April 30, 2016. Picture taken April 30, 2016. REUTERS/Andrew Cullen/File Photo

BENGALURU: General Electric Co (GE), banking on a recovery in oil prices, said it would merge its oil and gas business with No. 3 oilfield services provider Baker Hughes Inc.

GE will own 62.5% of the new publicly traded company, which will have combined revenue of US$32bil, while Baker Hughes shareholders will own 37.5%.