GE to merge oil unit with Baker Hughes to create service giant

The logo of US conglomerate General Electric is pictured at the company's site in BelfortThe deal to create a company with $32 billion in annual revenue will combine GE's strengths in making equipment long-prized by oil producers with Baker Hughes's expertise in drilling and fracking new wells. Shares of Baker Hughes were down nearly 7 percent, a drop that executives said likely was due to the deal's complicated structure. GE also has invested heavily in large data processing services just as the oil industry eyes its potential to boost oil recovery.

Source: Feed3

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