June 13 (UPI) -- An agreement with the U.S. Justice Department means the close of the merger between General Electric and Baker Hughes is imminent, the companies announced.
The companies filed a consent decree in a district court in Washington D.C. that outlines GE's divestment from its water and process technology unit, part of a remedy for the merger announced last year.
"The companies also recently received clearance from the European Commission to complete the transaction without conditions, and Baker Hughes scheduled its shareholders vote for June 30," their joint statement read. "We look forward to completing our transaction and continue to target a mid-year close."
Both sides agreed unanimously on the arrangement in October, with the oil and gas unit of GE taking a 62.5 percent stake in Baker Hughes for an entity with combined revenue of $32 billion. For Baker Hughes, it touted itself as a "new" company, while GE avoided the costs of a full acquisition.
The arrangement came after a market downturn constrained capital investments in oil and gas exploration and production, a sector serviced by companies like Baker Hughes. In November, the company formed a business venture with Goldman Sachs and others that would focus on North American hydraulic fracturing.
Martin Craighead, the chairman and CEO of Baker Hughes, said the new business unit formed with Goldman Sachs would tighten the focus on the North American market while at the same time easing financial constraints for his company.
For GE, the company in March agreed to sell off its water and processing unit to French water group Suez for $3.4 billion in order to satisfy competition concerns from regulators.
General Electric has a heavy footprint in wind energy and fossil fuels, supplying pumps and compressors for exploration and production.
Rival oilfield services company Halliburton made a similar bid for Baker Hughes last year.