New York-listed conglomerate GE on October 31 confirmed in a statement it is to merge its oil and gas business with Houston, Texas-based oilfield services group Baker Hughes.
GE is taking advice on the deal from bankers at Centerview and Morgan Stanley, while Goldman Sachs is advising Baker Hughes, according to the statement, which said the tie-up will create a company with $ 32 billion in revenues and operations in more than 120 companies.
The latest high-profile mandate rounds off a impressive October for Centerview, which is also advising US wireless technology group Qualcomm on its $ 47 billion agreed offer for Dutch firm NXP Semiconductors, announced on October 27, and the proposed purchase by British American Tobacco of the remaining majority stake in Reynolds American that it doesn’t already own. Dealogic values the deal at $ 58 billion overall, although BAT, in its statement announcing the deal, ascribed a $ 47 billion valuation.
Goldman Sachs is also involved on the latter deal in an advisory capacity.
Even without the GE deal, Centerview has enjoyed a record month of advisory mandates. Dealogic figures show that the advisory firm had handled $ 116.1 billion of M&A deals in October, not including the GE deal. The figure outstrips the $ 111.3 billion from its previous busiest month in January 2008.
The deal between GE and Baker-Hughes will see the former company contribute $ 7.4 billion to fund a $ 17.50 share dividend of the latter’s shareholders. GE will own 62.5% and Baker Hughes’ shareholders 37.5% of the combined business.
Centerview could not immediately be reached for comment.