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US Approves GE, Baker Hughes Merger | ASHARQ AL-AWSAT English Archive 2005 -2017
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The logo of General Electric Co. is pictured at the Global
Operations Center in San Pedro Garza Garcia, neighbouring Monterrey,
Mexico, May 12, 2017. REUTERS/Daniel Becerril – RTS16EVF REUTERS

Fairfield, United States – Baker Hughes Incorporated and General Electric Company announced that they have reached an agreement with the Department of Justice to merge its oil and gas business through a new company that will be registered in the stock market after General Electric’s approval to sell its water equipment sector.

General Electric agreed to sell its Water & Process Technologies business after it completed the merging agreement with Baker Hughes, according to the deal approved by the Department of Justice in Washington,

GE announced in March that it had agreed to sell GE Water to Suez for $3.4 billion. No other remedies are required by today’s proposed consent decree.

The companies also recently received clearance from the European Commission to complete the transaction without conditions, and Baker Hughes scheduled its shareholders vote for June 30.

GE announced on Monday that it had appointed John Flannery as the new CEO of the company to replace Jeff Immelt, who will be stepping down after 16 years as a chairman.

Under the chairmanship of Immelt, General Electric sold its units of funding and television broadcasting to focus on high-profit and software-related activities, and to reduce costs. However, it failed in reaching the gains anticipated by investors.

Flannery, 55, began his career at GE Capital 30 years ago, and he is currently the GE CEO Healthcare.

Flannery will replace Immelt as the CEO of the company on August 1.

Speaking live on Facebook he said: “There are many areas in which we’ve excelled, but, at the same time, clearly, there are areas which we need to be better at and we need to address those areas with urgency and with purpose.”

GE’s shares rose up to 3.5 % at $28.94 following the announcement of Flannery’s appointment.

On the other hand, the US Treasury Department reported that the US government’s budget deficit rose to $88 billion, and that spending has outpaced revenue.

According to the monthly budget report, the deficit in May 2016 was $53 billion. Economists polled by Reuters had forecast the Treasury reporting an $86.5 billion deficit last month.

Meanwhile, the deficit has increased to $433 billion in the first eight months of this year’s budget from $405 billion last year.

Revenues rose 7% last month from May 2016 to $240 billion, while, spending leapt 19 % to $329 billion.