Baker Hughes’ Subsea Drilling Systems and Akastor’s MHWirth Complete Merger to Form HMH

Rhea-AI Summary

Baker Hughes' (NYSE: BKR) Subsea Drilling Systems business has successfully merged with Akastor ASA's wholly-owned subsidiary MHWirth AS to establish a new global offshore drilling equipment company named HMH. Both companies hold equal equity in HMH, which aims to enhance drilling efficiency and support the energy transition with innovative solutions. Headquartered in Amsterdam, HMH will leverage a robust service and technology portfolio to explore growth opportunities in drilling services and adjacent industries.

Positive

• Formation of HMH expected to enhance drilling efficiency and support energy transition.
• Equal equity ownership between Baker Hughes and Akastor provides strategic stability.
• Potential for future growth in adjacent industries such as renewables and mining.

Negative

• None.

HOUSTON & FORNEBU, Norway--(BUSINESS WIRE)-- The merger of Baker Hughes’ (NYSE: BKR) Subsea Drilling Systems business (SDS) and Akastor ASA’s (Oslo: AKAST) wholly-owned subsidiary, MHWirth AS (MHWirth), has been completed to form a global offshore drilling equipment company. The new company will be known as HMH (“the Company”), and as previously announced, Baker Hughes and Akastor own equal equity in the Company.

HMH combines integrated delivery capabilities, capital, renowned industry expertise and delivers the full range of offshore drilling equipment products and packages at scale. HMH aims to support the industry’s transition toward more energy-efficient solutions, as well as deploying technologies and service solutions to make the sector more competitive through increased drilling efficiency. Moreover, the Company’s service and technology portfolio will be utilized as a springboard for future growth, both within drilling services and when pursuing opportunities towards adjacent industries such as renewables and mining.

“This is a very exciting transaction for the industry, our customers, shareholders and employees. We are combining two of the best-known equipment manufactures in our industry to create HMH, building on a best-in-class portfolio and unparalleled full-service approach,” commented Merrill A. “Pete” Miller, the Chairman and CEO of HMH. Mr. Miller went on to say that “at a time of worldwide energy transition, HMH has the expertise to help the entire industry move towards more energy-efficient drilling and other sustainable energy solutions.”

The Company is headquartered in Amsterdam, Netherlands with its two major operational centers in Houston, USA and Kristiansand, Norway. HMH is currently a privately owned company and is effective from October 1, 2021.

For more information on HMH, visit our website at hmhw.com.

About Baker Hughes

Baker Hughes (NYSE: BKR) is an energy technology company that provides solutions for energy and industrial customers worldwide. Built on a century of experience and with operations in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com.

About Akastor

Akastor is a Norway-based oil-services investment company with a portfolio of industrial holdings and other investments. The company has a flexible mandate for active ownership and long-term value creation. Visit us at akastor.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211006005908/en/

HMH Media Relations

John Stout and Anita Karlsen

Marketing@hmhw.com

Baker Hughes Investor Relations

Jud Bailey

+1 281-809-9088

investor.relations@bakerhughes.com

Akastor Investor Relations

Øyvind Paaske

Chief Financial Officer

+47 917 59 705

Oyvind.paaske@akastor.com

Source: HMH

FAQ

What is the purpose of the merger between Baker Hughes and Akastor?

The merger aims to create HMH, a global offshore drilling equipment company, enhancing drilling efficiency and supporting the energy transition.

What is the significance of the formation of HMH for Baker Hughes shareholders?

HMH's formation may drive growth and innovation in offshore drilling and adjacent sectors, potentially benefiting Baker Hughes shareholders.

What is the expected impact of the merger on the offshore drilling industry?

The merger is expected to improve drilling efficiencies and introduce more energy-efficient solutions to the offshore drilling industry.

When did the merger between Baker Hughes and Akastor take effect?

The merger took effect on October 1, 2021.