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Baker Hughes Secures Conditional EU Approval for $13.6B Chart Industries Acquisition
U.S. oilfield services firm Baker Hughes has received conditional antitrust approval from the European Union for its $13.6 billion acquisition of Chart Industries, a manufacturer of industrial equipment. The approval hinges on Baker Hughes' commitment to divest a specific Chart business to address competition concerns.
Regulatory Conditions
The European Commission, the EU's primary competition authority, granted the approval after Baker Hughes offered concessions to resolve regulatory concerns. The Commission had worried that the combined entity would have the ability and incentive to unfairly favor Chart's liquefied natural gas (LNG) business, potentially harming competitors.
To secure the deal, Baker Hughes agreed to a set of remedies, which will be valid for 10 years. The key conditions include:
- The divestiture of Chart’s proprietary process technology.
- The sale of Chart's small-scale process technology business.
- A commitment to ensure the interoperability of its equipment with LNG equipment from third-party providers.
AdStrategic Rationale
Baker Hughes first announced its intention to acquire Chart Industries in July of the previous year. The acquisition is a strategic move to expand its footprint in industrial technology, particularly in high-growth sectors like LNG and data centers, while leveraging its existing industrial and energy technology portfolio.
Chart Industries specializes in manufacturing essential equipment for handling gas and liquid molecules, such as valves and measurement technology. The company operates a significant global network, with 65 manufacturing sites and over 50 service centers, according to the source report.