Baker Hughes Reportedly Poised To Buy Chart Industries For $13.6B, Trumping Flowserve Deal

Baker Hughes (BKR) is reportedly close to buying Chart Industries for $13.6 billion in cash, gatecrashing an earlier merger deal involving Flowserve.

According to a report by The Financial Times, citing people familiar with the matter, the deal values Chart’s equity at $210 per share, a 22% premium to its market capitalization, giving it an equity value of approximately $10 billion. Chart stock jumped nearly 18% in extended trading on Monday.

The report added that Chart’s earlier deal with Flowserve (FLS), which makes pumps and valves, has been terminated. In June, the two companies had agreed to combine in a $19 billion deal. Flowserve stock gained 4.7% while Baker Hughes was down 1.2%.

Retail sentiment on Stocktwits about the Chart and Flowserve stocks was in the ‘bearish’ territory at the time of writing, while traders were ‘bullish’ about Baker Hughes.

Chart had a market capitalization of $7.71 billion according to Monday’s closing price. The company supplies engineered equipment, used to handle gases and liquids in low temperatures. Baker Hughes, valued at $45.6 billion, is reportedly seeking a growth boost for its industrial and energy technology (IET) division, serving crucial industries such as liquefied natural gas, nuclear energy, and data centers.

The company is banking on growing power demand to mitigate the impact of a weak outlook for its core oilfield services segment. According to a report by Deloitte, power demand from AI data centers in the United States is expected to grow more than thirtyfold, reaching 123 gigawatts, up from 4 gigawatts in 2024.

The company said last week that orders at its IET segment reached $3.5 billion in the second quarter, resulting in another record backlog for the segment.

The Financial Times report added that the deal was likely to be announced in the coming days, but the agreement was not yet final, and the plans could still change.

Flowserve and Chart stocks have fallen 5.2% and 11.4%, respectively, this year, while Baker Hughes stock has gained nearly 12%.

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