GE Oil and Gas
2017
$7.4B
Why
Baker Hughes merged with GE Oil and Gas in a $7.4 billion deal to create a combined energy technology company. GE contributed gas turbines, compressors, pumps, valves, LNG systems, and industrial equipment. Baker Hughes contributed oilfield services expertise and market access.
Impact
The merger created the IET segment, which now generates $12.2 billion in revenue (43.8% of total). GE held 62.5% initially, began divesting in 2019, and completed full exit in 2021. The IET business provides the long-term RPO backlog ($30.1 billion) that differentiates Baker Hughes from pure-play OFSE competitors.
Outcome
The GE merger transformed Baker Hughes from a pure oilfield services company into a hybrid energy technology company. While integration was challenging and GE's financial distress created governance issues, the IET business has become the primary growth and margin expansion driver.