Chart Industries has terminated its $19 billion all-stock “merger of equals” with Flowserve and signed a $13.6 billion all-cash deal with Baker Hughes. Flowserve disclosed it will receive a $266 m termination payment. The Baker Hughes–Chart transaction values Chart at $210 per share and is targeted to close by mid-2026, subject to customary approvals. The move positions Baker Hughes to deepen capabilities in LNG, hydrogen, and cryogenic equipment, while reshaping competitive dynamics across energy-transition supply chains

US cryogenic equipment manufacturer Chart Industries has terminated its $19bn all-stock merger of equals with industrial machinery supplier Flowserve, having signed a new $13.6bn cash deal with global energy company Baker Hughes.

The confirmation follows reports this morning that Baker Hughes was preparing a counter-offer to buy Chart, according to the Financial Times.

Chart’s decision came after its board, advised by legal and financial experts, determined that Baker Hughes had made a superior offer to Flowserve’s.

The bid is lower than the $19bn proposed merger of equals between Chart Industries and Flowserve, announced in June, but would value Chart’s equity at $210 a share, a 22% premium to its market capitalisation, the report states. In a statement, Flowserve said it will receive a $266m termination payment.

Jill Evanko, President and CEO of Chart, said the all-cash transaction with Baker Hughes will deliver immediate value to Chart shareholders.

Shares in Chart rose 16.5% to $200 in after-hours trading on Monday.

Chart announced its second quarter financial results today, but has cancelled its coinciding earnings call and said it will not host a webcast or conference to discuss the results.

The company also withdrew its 2025 financial guidance due to the proposed acquisition.

Lorenzo Simonelli, Chairman and CEO of Baker Hughes, described the buyout as a milestone for Baker Hughes, calling it a testament to its financial execution and strategic focus as an energy and industrial technology company.

“Adding this high-growth, high-margin business to our industrial and energy technology segment will deliver strong earnings accretion and returns, contributing to an improved growth and margin profile,” he said.

Last month, Baker Hughes sold its Precision Sensors & Instrumentation (PSI) product line to Crane Company, a manufacturer of engineered industrial products, for around $1.15bn cash.

PSI, part of Baker Hughes’ Industrial & Energy Technology (IET) segment, includes the Druck, Panametrics, and Reuter-Stokes brands that manufacture instrumentation and sensor-based technologies to detect and analyse pressure, flow, gas, moisture, and radiation across various industries. 

The deal is expected to close at the end of 2025 or early 2026.

Chart & Baker Hughes: A glimpse into an interwoven future?

Analysis by Rob Cockerill, Global Content Director

Oh to be a fly on the wall in the headquarters of Chart Industries in Ball Ground, Georgia. For a company with the tagline of Cooler By Design, it seems to be firmly heating up through synergy.

It’s been a whirlwind two months for the company, with at least two suitors queuing up to partner with the company on a long-term future in industrial and energy process technologies.

The first few days of June saw the news break about a $19bn merger-of-equals with Flowserve Corporation – a deal that had been expected to close in Q4 2025 and had itself caught the headlines.

An abrupt cancellation of the merger – at a termination cost of $266m in Flowserve’s favour – and the news that Baker Hughes is to acquire Chart Industries in a $13.6bn deal has completely supplanted that transaction. So much so that others have described it as ‘gatecrashing’ the earlier agreement. With a break-up fee of more than $250m in its back pocket, I doubt Flowserve will mind too much. Shares in the company rose more than 5% in out-of-hours trading, too.

Bigger picture

Chart will likely not lose too much sleep over that, either.

Not only does it look set to become part of a $46bn oilfield services group with all the synergies and wider opportunities that present, but Chart shareholders will prosper in the here and now too; the deal with Baker Hughes values Chart’s equity at $210 per share, a 22% premium on its market capitalisation.

It presents an immediate pay-off for all Chart shareholders. There’s arguably also a much bigger picture at play here…

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What the Baker Hughes–Chart Deal Means for Your Hydrogen & LNG Projects

Consolidation in cryogenic and process equipment will influence lead times, pricing, and partner selection across LNG and hydrogen projects. Klean Industries helps developers and investors de-risk procurement and align technology choices with evolving supply chains.

Request a 30-minute procurement & policy impact briefing tailored to your portfolio » GO.