Combining General Electric Co. and Baker Hughes Inc.’s oil businesses into partnerships could create a player capable of competing with the industry’s biggest — and may not require a huge amount of money.
The industrial-equipment behemoth and the No. 3 oil services provider say that discussions are taking place for potential “partnerships,” but wouldn’t provide details except to say that a full acquisition isn’t on the table. Whatever the outcome, the talks signal the companies are seeking ways to enhance cooperation and boost value, analysts say, mirroring efforts by companies across the industry to fortify their operations amid the oil-price slump.
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