EU Approves Baker Hughes' Acquisition of Chart Industries

The European Commission approved Baker Hughes' (BKR) proposed acquisition of Chart Industries under the EU Merger Regulation, subject to compliance with commitments offered by the two US-based companies, the Commission said in a statement on Friday. The Commission said its investigation found the deal, as originally notified, raised concerns that it could reduce competition in global markets for liquefied natural gas liquefaction equipment and technologies. According to the Commission, Baker Hughes holds a dominant position in the market for LNG compressor trains and could have used that position to give Chart's LNG business an unfair competitive advantage. The regulator said this could have included tying sales of compressors to Chart products, reducing interoperability with third-party equipment, or using commercially sensitive information obtained through projects involving rival LNG technology providers. The Commission said combining the companies' LNG products and technologies could have harmed competition, with negative effects on prices and innovation. To address those concerns, Baker Hughes and Chart committed to divest Chart's proprietary IPSMR process technology.