Baker Hughes employees in Norway have been offered severance packages ahead of a planned merger with GE Oil and Gas.]
If approved the deal, which is due to be ratified in the summer, will see the creation of a $32billion oilfield services giant which will compete with the like of fellow service Goliath Schlumberger.
Approximately 1,000 employees in the Norwegian operations have been offered voluntary severance packages, according to reports.
Baker Hughes had previously been lined up for a merger with oilfield service firm Halliburton, only for the deal to be scrapped at the eleventh hour.
The two companies said they had pulled the plug due to poor market conditions and “challenges” getting the transaction past regulators.
GE then swooped to take advantage. It will own 62.5% of the “new” Baker Hughes and will contribute $7.4billion to fund a $17.50 per share special dividend to existing Baker Hughes shareholders.
Baker Hughes shareholders will own 37.5% of the new company, which will have dual headquarters in Houston and London.
The US companies said the merger would create the second largest player in the oilfield equipment and services industry, with operations in more than 120 countries.