On July 29, 2025, Baker Hughes announced a landmark all-cash agreement to acquire Chart Industries for a total enterprise value of $13.6 billion.
This move is a strategic pivot that positions Baker Hughes at the heart of the global energy transition, creating a technology powerhouse for LNG, hydrogen, and emerging industrial applications.
Executive Summary
Baker Hughes offers $210 per share in cash, a 22% premium over Chart’s prior closing price. This disrupts Chart’s previously announced $19 billion merger with Flowserve and sets the stage for a new chapter in global energy technology competition. The transaction is expected to close by mid-2026, pending regulatory approvals.
1. Strategic Fit: Redefining Baker Hughes’ Portfolio
This deal marks a decisive move for Baker Hughes to diversify beyond its traditional oilfield services and expand its Industrial & Energy Technology (IET) segment:
LNG Dominance: Chart’s cryogenic equipment is used in 90% of LNG projects worldwide, enabling Baker Hughes to offer fully integrated solutions from gas extraction through liquefaction, storage, and delivery .
Hydrogen & New Energies: Chart brings market-leading technologies for hydrogen liquefaction, storage, and transport—key enablers for the fast-growing hydrogen economy .
Data Centers & Industrial Gas: As demand for AI and cloud-driven data centers soars, Chart’s cooling tech unlocks new growth verticals.
Diversification: Post-deal, Baker Hughes projects 55% of its revenue will come from energy technology, away from cyclical oilfield markets.
This strategic transformation tracks with what BP did by acquiring Archaea Energy for $4.1 billion to enter the biogas market, and what Chevron did with its $3.15 billion purchase of Renewable Energy Group to push into biodiesel and renewable fuels. The pattern is clear: established energy majors are using large-scale M&A to rapidly add proven technology, customers, and revenue in growth sectors tied to the energy transition.
2. Market Dynamics: Riding the Waves of LNG, Hydrogen, and Data Growth
Surging LNG Demand: With countries seeking lower-carbon fuels to replace coal, LNG is in historic demand. Baker Hughes already secured orders for over 80 MTPA (million tons per annum) in 2023 and now aims for a bigger share of the $1.5 trillion LNG market .
Hydrogen Growth: The combined entity will be a top supplier to the $3 trillion hydrogen infrastructure market, covering everything from production to end-use.
Data Center Expansion: Chart’s technologies align with the explosion in data center power and cooling needs, a market that delivered Baker Hughes $550M in orders in Q2 2025 alone.
By combining portfolios, Baker Hughes can now deliver “hot” (turbines) and “cold” (cryogenics) technology solutions across the entire gas value chain.
3. Financials: A Premium Deal with Significant Upside Opportunity
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Baker Hughes’ all-cash offer represents a bold offer, paid for with new debt (net leverage projected at 2.25x). The company must execute on ambitious synergy targets to satisfy shareholders and avoid the pitfalls that have plagued high-premium energy deals in the past.
4. Synergy Potential: Integration and Cross-Selling
Cost Synergies: $325M in annual savings by optimizing supply chains, streamlining overlapping operations, and leveraging scale in procurement.
Revenue Synergies: $150–$200M expected through cross-selling, bundling LNG and hydrogen solutions, and opening new markets such as data center cooling.
One-Stop Shop: The combined company can offer end-to-end solutions, streamlining project delivery and creating value for large industrial and energy customers.
5. Technology: Creating a Gas Processing Powerhouse
Chart Industries:
Leader in cryogenics—designs and builds heat exchangers, liquefaction equipment, and cryogenic tanks used in LNG and hydrogen supply chains.
Owns 65 manufacturing sites globally, expanding Baker Hughes’ operational footprint.
Baker Hughes:
Market leader in rotating equipment—turbines and compressors critical to LNG plants and gas processing.
Together, they offer a vertically integrated product line for everything from LNG liquefaction to hydrogen storage, creating a technical “one-stop shop” with few global peers.
6. Risks: Execution, Market, and Financial Hurdles
Integration Complexity: Merging 65 manufacturing sites and distinct corporate cultures will be a major challenge—smooth integration is crucial for capturing the promised synergies.
Market Volatility: Both LNG and hydrogen markets are subject to price and policy swings, which could impact demand.
Debt Load: Financing the all-cash transaction increases Baker Hughes’ leverage, reducing flexibility until debt is paid down. Chart’s withdrawal of its 2025 guidance signals short-term uncertainty for stakeholders.
7. ESG Implications: Accelerating the Energy Transition
Decarbonization Focus: The deal strengthens Baker Hughes’ position as a supplier of technologies for lower-carbon fuels—LNG (as a coal replacement), hydrogen, and carbon capture.
New Energy Strategy: Significant capital is now dedicated to non-oil and gas segments, aligning Baker Hughes’ portfolio with net-zero and climate commitments from governments and major customers.
Enabling “Hard-to-Abate” Sectors: Chart’s solutions are foundational for industrial decarbonization, including hydrogen for heavy transport and small-scale carbon capture.
Conclusion: A Transformational Deal, But Execution Is Everything
Baker Hughes’ $13.6 billion acquisition of Chart Industries is one of the most significant energy technology transactions of the decade. It creates a global leader in LNG, hydrogen, and industrial gas solutions, uniquely positioned to ride the tailwinds of the energy transition, AI-driven data center growth, and the coming hydrogen economy.
The success of this acquisition, however, will depend on seamless integration, delivery of synergy targets, and the ability to capture growth across multiple, rapidly evolving sectors. If executed well, Baker Hughes will not only solidify its leadership in LNG but also emerge as a key enabler of the world’s decarbonization ambitions.