GE has agreed to merge its oil and gas business with Baker Hughes to create a new oilfield technology services company creating annual revenues of $32bn from providing physical and digital technology.
Baker Hughes current chief executive officer Martin Craighead will become vice chairman, with GE's current president and CEO, Lorenzo Simonelli, taking charge and GE CEO Jeff Immelt becoming chairman.
"This transaction creates an industry leader, one that is ideally positioned to grow in any market," said Immelt.
"Oil & gas customers demand more productive solutions. This can only be achieved through technical innovation and service execution, the hallmarks of GE and Baker Hughes."