Cleared Acquisition of Baker Hughes by General Electric

In May 2017, the European Commission approved the $7.4 billion acquisition of Baker Hughes by General Electric (GE) without remedies after a Phase I investigation. The newly formed BHGE combined the digital solutions and technology from GE with Baker Hughes’ knowledge in the oilfield services sector.

As Baker Hughes and GE sell competing products in a number of markets, and in other markets, GE is also a supplier to Baker Hughes and its competitors, the European Commission investigated both horizontal and vertical effects from the merger.

Compass Lexecon assisted Baker Hughes during the Commission’s review of the transaction. In particular, we analyzed Baker Hughes’ bidding data to assess the closeness of competition between the Parties in different markets, such as the market for electrical submersible pumps.

The Compass Lexecon team was led by Lorenzo Coppi and included Andy Parkinson, Michele Avagliano, Alyssa Lam, Ferenc Peto and Su-Ann Lim.