Baker Hughes Acquires Chart Industries in $13.6 Billion Deal, Expanding LNG and Industrial Gas Markets

What's Happening?

Baker Hughes has successfully acquired Chart Industries for $13.6 billion in an all-cash transaction, following approval from Chart Industries' shareholders. This acquisition marks one of the largest energy-technology deals since Baker Hughes' merger with GE Oil & Gas in 2017. The acquisition aligns with Baker Hughes CEO Lorenzo Simonelli's strategy to diversify the company's portfolio beyond traditional oilfield services into growth areas such as LNG, hydrogen, carbon capture, and data-center cooling systems. Chart Industries is known for its dominance in cryogenic and process equipment, which are crucial for these sectors. The deal is expected to close by mid-2026, pending antitrust clearance and other conditions.

Why It's Important?

This acquisition positions Baker Hughes at the forefront of the expanding LNG and industrial gas markets, which are experiencing significant growth in the U.S., Qatar, and Africa. The deal is expected to generate $325 million in annual cost synergies within three years, leveraging overlapping manufacturing sites and procurement scale. The acquisition also provides Baker Hughes with immediate leverage in upcoming LNG expansions and carbon-capture projects, enhancing its competitive edge. The transaction underscores the intensifying competition in the midstream and downstream equipment sectors, prompting rivals to reassess their strategies.

What's Next?

The acquisition is set to close by mid-2026, subject to regulatory approvals. Baker Hughes plans to finance the deal through a bridge facility from Goldman Sachs and Morgan Stanley, which will be refinanced through long-term debt issuance. Chart Industries will continue to operate as a distinct brand within Baker Hughes' Industrial & Energy Technology division. The acquisition is expected to impact the LNG supply chain, with competitors like Technip Energies, Worley, and Saipem potentially re-evaluating their exposure to high-spec cryogenic systems.