Baker Hughes Acquires Chart for $13.6B in All-Cash Move to Expand LNG and Data Center Operations

Oilfield services giant Baker Hughes Co. has agreed to acquire Chart Industries Inc. for $13.6 billion in an all-cash transaction, overtaking a previously announced merger between Chart and Flowserve Corp. that was set to create a combined entity [1]. The deal, announced July 29, marks one of the largest acquisitions in Baker Hughes’ recent history and reflects a broader industry trend of consolidation as major players seek to strengthen their market positions in the face of rising demand for liquefied natural gas (LNG) and data center infrastructure [1].

The acquisition offers a 22% premium over Chart’s market value, which closed at $7.7 billion on July 28. The $13.6 billion enterprise value includes assumption of Chart’s debt. Following the announcement, Chart’s stock surged more than 15% in early trading, while Baker Hughes shares dipped slightly by about 1%. The transaction values Chart at over $9.4 billion post-premium and grants Baker Hughes access to Chart’s global manufacturing network, including 65 production facilities and 50 service centers [1].

Baker Hughes CEO Lorenzo Simonelli emphasized the strategic alignment with growth sectors, stating the deal would position the company as a “technology leader” capable of addressing demand for low-carbon energy and industrial solutions. The acquisition accelerates Baker Hughes’ expansion into LNG export markets and data center infrastructure, areas where Chart has established expertise in equipment manufacturing and services [1]. This move aligns with broader industry dynamics: after years of consolidation among oil and gas producers, service providers are now consolidating to scale up amid fragmented competition. Baker Hughes, one of the “Big Three” global oilfield services firms alongside Halliburton Co. and Schlumberger Ltd., has recently closed its $8 billion acquisition of ChampionX Corp., further signaling a competitive arms race in the sector [1].

The decision to abandon the Chart-Flowserve merger came after Chart’s board deemed Baker Hughes’ offer a “superior proposal.” Flowserve will receive a $266 million termination fee, while its shares rose 1% following the news. Flowserve CEO Scott Rowe cited “financial discipline” and confidence in the standalone business as reasons for walking away from revised merger talks [1].

Baker Hughes’ acquisition strategy reflects a decade-long transformation. After a failed $28 billion merger attempt with Halliburton in 2016, the company merged with General Electric’s oil and gas division before being spun off independently in 2019. Its current market capitalization of $45 billion underscores its renewed position as a standalone entity. The Chart deal builds on this trajectory, aiming to diversify into high-growth markets while enhancing technological capabilities [1].

The transaction remains subject to regulatory approvals and is expected to close in early 2026. Analysts note the deal’s potential to reshape the oilfield services landscape, with Baker Hughes now better positioned to compete on global LNG projects and industrial infrastructure demands. However, the premium paid for Chart raises questions about the valuation rationale, particularly given the volatile energy market and the need for returns on significant capital expenditures [1].

Source: [1] Baker Hughes buys Chart Industries for $13.6 billion in oilfield services deal, outbidding and canceling planned Chart-Flowserve merger (https://fortune.com/2025/07/29/baker-hughes-buys-chart-industries-oilfield-outbidding-flowserve/)