Why Did Chart Industries (GTLS) Soar 15.93% On Acquisition Buzz?

On July 29, 2025, Chart Industries (NYSE:GTLS) saw a significant surge in its stock price, rising by 15.93% in pre-market trading.

Chart Industries has been the subject of intense speculation regarding a potential acquisition by Baker Hughes. Reports indicate that Baker Hughes is close to finalizing a $13.6 billion cash deal to acquire Chart Industries, which would replace Chart's earlier $19 billion all-stock deal with Flowserve. This move by Baker Hughes is seen as a strategic play to enhance its position in the energy transition, particularly in the areas of liquefied natural gas (LNG) and hydrogen infrastructure.

Baker Hughes' interest in Chart Industries is driven by the latter's expertise in cryogenic technology and hydrogen equipment, which are crucial for LNG liquefaction, hydrogen storage, and biogas processing. These sectors are central to the global push for net-zero emissions and are expected to see significant growth in the coming years. By acquiring Chart, Baker Hughes aims to strengthen its Industrial & Energy Technology (IET) segment, which is poised for long-term growth.

The acquisition is part of a broader trend of consolidation in the energy infrastructure sector, fueled by the Inflation Reduction Act (IRA) and the growing demand for clean energy solutions. The deal is expected to be immediately accretive to earnings and cash flow per share, with synergies estimated at $150–$200 million annually. This acquisition aligns with Baker Hughes' strategy to leverage its financial strength to secure strategic assets in the energy transition landscape.