Baker Hughes Nears $13.6B Acquisition of Chart Industries
Baker Hughes is close to finalizing a $13.6 billion all-cash acquisition of Chart Industries, a major player in gas and liquid processing equipment, according to a report from the Financial Times. The deal, expected to be announced shortly, would mark a significant move by Baker Hughes to expand its footprint in the natural gas and liquefied natural gas (LNG) markets. However, sources caution that the agreement has not yet been formally completed.
The acquisition would override a previous plan announced in June for Chart Industries to merge with Flowserve in a $19 billion all-stock transaction. That earlier agreement has reportedly been scrapped as a result of Baker Hughes’ more attractive offer.
Baker Hughes, which has been streamlining its business and investing in technologies that support cleaner energy, is actively repositioning itself to align with the global shift toward more sustainable energy solutions. The potential purchase of Chart aligns with its strategy to grow its industrial and energy tech capabilities.
Chart Industries ended Monday’s trading session at $171.65 per share before jumping more than 17% in after-hours activity to reach $202. The pending acquisition would price the company’s shares at $210 each, reflecting a 22% premium over the closing value and implying an equity valuation of approximately $10 billion. As of Monday’s close, Chart’s market cap was $7.71 billion, according to LSEG data.
If finalized, the transaction would add to the wave of consolidation in the U.S. energy sector, which recorded around $250 billion in merger and acquisition activity in 2023. Deal activity, however, has slowed in recent months. Baker Hughes could accelerate its role in LNG and hydrogen markets, potentially gaining a competitive edge as global demand for low-carbon solutions grows. The move may also trigger further consolidation across the energy technology sector, as companies seek scale and innovation to navigate the evolving energy landscape.
