The U.S. Department of Justice has reached an agreement on the merger of Houston oil field services company Baker Hughes and General Electric’s oil and gas division, clearing the way for shareholders to approve the deal.
The consent decree, filed on Monday in Washington, requires GE to sell its Water & Process Technologies business. No other requirements were included in the decree.
“Today’s milestone represents significant progress toward creating an oil and gas productivity leader positioned to deliver value for customers, employees and shareholders,” Baker Hughes said in an announcement.
General Electric Co.’s chairman and chief executive, Jeffrey Immelt, is stepping down after 16 years. Immelt will retire with at least $112 million, which comes primarily from the company’s supplemental pension plans. As of Dec. 31, the 61-year-old has $81.7 million in overall pension benefits, according to the company’s proxy filing dated March 8. Along with other compensation packages, Immelt will also receive two company-paid life insurance plans that provide a combined death benefit of $24.2 million. Immelt’s replacement was announced on Monday.
The European Union’s regulatory body signed off on the merger last month.
Shareholders will vote on the deal on June 30. The company hopes it will close in July.
The combination will result in the world’s second-largest energy services company, called Baker Hughes, a GE company. The deal will leave GE, based in Boston, with 62.5 percent of the combined Baker Hughes.
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