FT reports that Baker Hughes is close to a $13.6 billion agreement with Chart, despite a rival bidder.

The Financial Times reported that Baker Hughes, a supplier of oil and gas equipment, is close to a deal worth $13.6 billion in cash, which would allow it to purchase Chart Industries ahead of rival bidder Flowserve.

Chart had agreed in June to merge with Flowserve, a maker of flow control systems, in a $19-billion all-stock deal.

Baker Hughes, Chart Industries, and Flowserve have not responded to our requests for comment.

According to LSEG, Chart manufactures industrial products such as valves for liquid and gas molecule handling. The company's market capitalization was $7.71 billion at Monday's closing.

The report stated that a deal with Baker Hughes could value Chart's equity as a 22% higher than its market value. This would give it an equity worth of around $10 billion.

The deal is likely to be announced within the next few days, FT reported. Sources warned that this agreement was not final, and plans may change.

Baker Hughes is trying to leverage the industrial and energy technologies it has developed to expand its presence and drive growth in the natural-gas and LNG sector. Reporting by Abu Sultan, Anusha devang Shah and Alan Barona; editing by Tasimzahid and Alan Barona

(source: Reuters)