US Oil and gas equipment supplier, Baker Hughes is nearing a $13.6 bill cash deal to buy Chart Industries, to counter Flowserve’s offer, the UK’s Financial Times reported yesterday.
A potential deal would displace an agreement Chart made in June to combine with flow control systems manufacturer, Flowserve in a $19 bill all-stock merger.
This agreement has now been terminated, the FT reported.
Chart manufactures industrial equipment, such as valves and measurement technology for gas and liquid molecule handling and had a market capitalization of $7.71 bill as of Monday's stock exchange close, as per LSEG data.
The deal with Baker Hughes would value Chart's equity at $210 per share, a 22% premium to its market value, giving it an equity value of about $10 bill, the report said.
The merger will likely be announced in the coming days, the FT added, citing sources who warned that the agreement was not final and the plans could change.
Baker Hughes has been trying to leverage its industrial and energy technology portfolio to drive growth and expand its presence in the natural gas and LNG sector.
