Oilfield services firm Baker Hughes and Norway's Akastor have completed the previously proposed merger of Baker Hughes’ Subsea Drilling Systems (SDS) business with Akastor’s subsidiary, MHWirth AS (MHWirth).
MHWirth provides advanced drilling solutions and services, and Baker Hughes’ SDS business is a division of the Oilfield Equipment segment of Baker Hughes, headquartered in Houston, which provides integrated drilling products and services.
The merged company, which is owned 50/50 by Baker Hughes and Akastor, will be named HMH. The operations and services of SDS and MHWirth will continue to be offered under the current branding during an integration and transition period, Akastor said Friday.
As part of the transaction, Akastor on Friday received a net cash consideration of around $78 million constituting the agreed fee to Akastor of $100 million, minus specific transaction adjustment factors.
Providing rationale for the transaction, back in March the two companies said the merger of the two business units would create a company with "a global full-service offshore drilling equipment offering that will provide customers with a broad portfolio of products and services."
The duo in March said that Merrill A. “Pete” Miller would serve as chairman and chief executive officer. Miller has been in the oil and gas industry for over 40 years holding various leadership roles including chairman, president, and chief executive officer of National Oilwell Varco.