Baker Hughes said on Tuesday it would buy Chart Industries in a $13.6 billion all-cash deal, including debt, edging out rival suitor Flowserve, to expand in the LNG, data centers and decarbonization segments.
The deal is part of Baker Hughes’ efforts to leverage its industrial and energy technology portfolio, which helped boost second-quarter earnings, and adds to the ongoing consolidation in the oilfield services and industrial supply sector.
The company has offered Chart Industries’ shareholders $210 per share held, representing a premium of about 22% based on the last close. Chart Industries shares were up 16.2% at $199.50 in premarket trading.
The deal follows Chart’s termination of a prior deal to merge with Flowserve, which decided not to raise its bid after being told Baker Hughes’ proposal was “superior”.
Shares of Flowserve, which will receive a $266 million breakup fee, were up 4.36% at $57.25 in premarket trading. Flowserve’s all-stock bid valued Chart at $159.98 per share, according to Reuters calculations.
The transaction has an equity value of about $9.44 billion, according to Reuters calculation. It is expected to close by mid-year 2026.
Chart manufactures industrial equipment such as valves and measurement technology for gas and liquid molecule handling.
Baker Hughes said $325 million in annualized cost synergies were expected to be realized at end of the third year.
(Reporting by Tanay Dhumal in Bengaluru; Editing by Sriraj Kalluvila)