Chart Industries soared in Tuesday's stock market after S&P 500 oil field services titan Baker Hughes announced it will buy the company in a $13.6 billion all-cash deal, squeezing out fellow suitor Flowserve, as it looks to increase its exposure to liquefied natural gas and the AI data center market.
Baker Hughes on Tuesday reported a definitive agreement to acquire all outstanding GTLS shares of common stock for $210 per share, representing a more-than 20% premium based on the closing price from Monday's stock market.
Chart Industries offers products and business solutions across the liquid gas supply chain, from engineering and design to installation and preventive maintenance to repair and service, as well as ongoing digital monitoring.
Baker Hughes noted Tuesday that Chart's business capabilities will "deepen" Baker Hughes' exposure to "attractive high-growth markets, including data centers" as well as broadening the S&P 500 component's exposure to industrial gas, metals and mining.
"The combination positions Baker Hughes to be a technology leader that can provide engineering and technology expertise to meet the growing demand for lower-carbon, efficient energy and industrial solutions across attractive growth markets such as LNG, data centers and new energy," Baker Hughes CEO Lorenzo Simonelli said in the news release Tuesday.
Best IBD 50 Stocks To Watch
S&P 500: Baker Hughes Falls, Chart Stock Soars
Stock market action on Tuesday saw Chart Industries stock soar 15.8% to 198.73. That marked a breakaway gap breakout past a handle buy point at 173.63. The stock's high intraday was 199.50, according to MarketSurge charts which investors can use as a de facto buy point.
Meanwhile, Baker Hughes, an S&P 500 component, declined around 1.7% in above-average-volume in Tuesday's stock market trading.
Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks
The deal between the S&P 500 oil field services firm and Chart Industries comes after Chart terminated a prior deal to merge with Flowserve, which decided not to raise its bid after being told Baker Hughes' proposal was "superior."
Flowserve will receive a $266 million breakup fee for the deal termination. FLS shares jumped 2.5% to 56.22 in stock market action on Tuesday, also breaking out from a traditional 55.47 buy point of a cup-with-handle base, according to MarketSurge.
Find The Next Palantir Or Hot IPO Stock With This Tool
Investors can keep tabs on the IBD Leaderboard watchlist, the IBD 50 list of top growth stocks and IBD SwingTrader along with the IBD Sector Leaders list.
Baker Hughes stock has an 84 Composite Rating out of a best-possible 99. The S&P 500 stock also has an 84 Relative Strength Rating and a robust 92 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
YOU MAY ALSO LIKE:
Get Full Access To IBD Stock Lists And Ratings
Why This IBD Tool Simplifies The Search For Top Stocks
IBD Digital: Unlock IBD's Premium Lists, Tools And Analysis Today
How To Invest: Rules For When To Buy And Sell In Bull And Bear Markets
