The European Commission said in a statement that the approval is conditional upon “full compliance with the commitments offered by Baker Hughes and Chart.”
The Commission noted that both companies are active in the global supply of equipment and technology for the liquefaction of natural gas.
Together, Baker Hughes and Chart would offer all of the key components needed to set up and operate an LNG liquefaction plant.
“The Commission had concerns that the transaction, as initially notified, would lead to reduced competition in the global markets for LNG liquefaction equipment and technologies, markets in which European companies participate as competitors and customers,” it said.
In particular, the Commission’s investigation found that Baker Hughes “holds a dominant position in the market for LNG compressor trains, which it could use to give an unfair competitive advantage to Chart’s LNG business, in such a way that Chart’s rivals may no longer be able to compete effectively.”
“For instance, Baker Hughes could, in various ways, (i) make its dominant compressor available for sale only to customers who also purchase Chart’s products, (ii) degrade Baker Hughes and Chart products’ interoperability with third-party products, or (iii) use commercially sensitive information obtained in projects involving competing LNG process technology providers to further benefit Chart,” it said.
The Commission said it was “concerned that by combining all these products and technologies in the hands of Baker Hughes, competition in these global markets would be harmed, with detrimental effects on prices and innovation.”
Divesting process tech
To address the Commission’s preliminary competition concerns, Baker Hughes and Chart offered to divest Chart’s proprietary process technology (IPSMR), and its small-scale process technology business to a “suitable third-party purchaser” to be approved by the Commission, and to ensure the interoperability of their equipment with third parties’ LNG equipment, according to the Commission.
These obligations will run for a ten-year period.
“These commitments fully address the competition concerns identified by the Commission, by removing Baker Hughes’ ability and incentive to favor Chart’s LNG business,” it said.
“The Commission therefore concluded that the transaction, as modified by the commitments, would no longer raise competition concerns,” the Commission said.
In July 2025, Baker Hughes and Chart entered into a definitive deal.
Chart’s shareholders approved the acquisition in October of the same year.
