The European Commission has approved General Electric's (GE) purchase of oilfield services company Baker Hughes without any conditions.
The EC said that the $1.7bn merger deal between the firms will not have any adverse affect on competition in relevant markets.
An investigation was launched by it as the two firms are actively engaged in providing oilfield services to oil and gas exploration and production firms in the European Economic Area (EEA) and rest of the world.
Raising further anti-competition concerns was the fact that both GE and Baker Hughes sell competing products to a number of specific markets. For the remainder markets, GE happens to be a supplier to the Texas-based Baker Hughes and its competitors.
Among other concerns where the EC looked into were the impact caused to the market following the merger relating to the supply of onshore and offshore electrical submersible pumps, chemicals used in the refining and petrochemicals industry, and sensors used in drilling and wireline applications.
For all the four products, the EC said that it concluded that there were no concerns found following its investigation.
GE in a statement said: “The companies remain confident in the value that the combined company will deliver to its customers, employees, shareholders and to the oil and gas industry.”
As previously announced during the signing of the definitive agreement, the two companies continue to expect their transaction to be closed in mid-2017.
The companies had entered into the merger agreement in late October 2016. Their combined entity is expected to have operations in 120 countries with GE to have a stake of 62.5% in it with Baker Hughes to hold the remainder stake.
The combined entity will maintain two headquarters in Houston, Texas and London, UK.
Image: Baker Hughes’ eco-centre facility. Photo: courtesy of Baker Hughes Incorporated.