Baker Hughes’ Joint Venture With Akastor

Paul, Weiss, Rifkind, Wharton & Garrison LLP advised Baker Hughes on the deal. Wiersholm has acted as lead counsel for the group of banks in both facilities consisting of DNB Markets, a part of DNB Bank ASA, as co-ordinator, DNB Bank ASA as agent under the new Akastor facilities and Nordea Bank Abp as agent under the facilities to MHH Holding B.V. De Brauw advised Akastor on the deal.

Baker Hughes completed the formation of a joint venture company with Akastor ASA that will combine Baker Hughes’ Subsea Drilling Systems (SDS) business with Akastor’s wholly owned subsidiary, MHWirth AS. The transaction will create a global full-service offshore drilling equipment offering that will provide customers with a broad portfolio of products and services. 

Under the terms of the transaction, Akastor will contribute its shares in MHWirth to the company in return for 50% of the shares and $120 million in consideration, of which $100 million is payable in cash at closing. Baker Hughes will contribute the SDS business to the company in return for the other 50% of the shares and $200 million in consideration, of which $120 million is payable in cash at closing. The transaction is expected to close in the second half of 2021, subject to customary closing conditions and approvals.

The previously announced transaction between Akastor ASA and Baker Hughes to create a joint venture company (MHH Holding BV) combining Baker Hughes’ Subsea Drilling Systems (SDS) business with Akastor’s wholly owned subsidiary, MHWirth AS (MHWirth) successfully closed on 1 October 2021. The transaction involved new senior secured facilities of USD 300 million to MHH Holding B.V. as well as a refinancing of Akastor’s existing corporate credit facility by a new NOK 250 million and USD 89 million facilities.

Baker Hughes (NYSE: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide.

MHWirth is a wholly owned subsidiary of Akastor and accounts for a material part of Akastor’s revenues and assets. Akastor has reported MHWirth as a separate segment in its financial statements. MHWirth, with its subsidiaries, is a self-sufficient group which is a global provider of integrated drilling solutions and services with world class technology, leading engineering and project management capabilities. 

The Paul, Weiss team included corporate partners Laura Turano (Picture), Brian Kim and Robert Schumer; tax partner David Mayo; intellectual property partner Claudine Meredith-Goujon; executive compensation partner Jean McLoughlin and counsel Lisa Krausz Eisenberg; real estate partner Peter Fisch; and litigation counsel Steven Herzog, Rachel Fiorill and Peter Jaffe.

The Wiersholm team consisted of Knut Engh Andenæs, Andreas Rabe, Lise Hammer and Atle Gabrielsen.

The De Braw team included Arne Grimme, Constantijn Voogt, Ferdinand Hengst, Eveline de Waard, Ryanne Elkerbout-Kok, Willem Bijveld, David Mees, Sebastian Hinse and Tijmen van de Leemkolk.

Involved fees earner: Willem Bijveld – De Brauw Blackstone Westbroek; Eveline de Waard – De Brauw Blackstone Westbroek; Ryanne Elkerbout-Kok – De Brauw Blackstone Westbroek; Arne Grimme – De Brauw Blackstone Westbroek; Ferdinand Hengst – De Brauw Blackstone Westbroek; Sebastian Hinse – De Brauw Blackstone Westbroek; David Mees – De Brauw Blackstone Westbroek; Tijmen Van de Leemkolk – De Brauw Blackstone Westbroek; Constantijn Voogt – De Brauw Blackstone Westbroek; Rachel Fiorill – Paul Weiss Rifkind Wharton & Garrison; Peter Fisch – Paul Weiss Rifkind Wharton & Garrison; Steven Herzog – Paul Weiss Rifkind Wharton & Garrison; Peter Jaffe – Paul Weiss Rifkind Wharton & Garrison; Brian Kim – Paul Weiss Rifkind Wharton & Garrison; Lisa Krausz Eisenberg – Paul Weiss Rifkind Wharton & Garrison; David Mayo – Paul Weiss Rifkind Wharton & Garrison; Jean McLoughlin – Paul Weiss Rifkind Wharton & Garrison; Claudine Meredith-Goujon – Paul Weiss Rifkind Wharton & Garrison; Robert Schumer – Paul Weiss Rifkind Wharton & Garrison; Laura Turano – Paul Weiss Rifkind Wharton & Garrison; Knut Engh Andenæs – Wiersholm; Atle Gabrielsen – Wiersholm; Lise Hammer – Wiersholm; Andreas Rabe – Wiersholm;

Law Firms: De Brauw Blackstone Westbroek; Paul Weiss Rifkind Wharton & Garrison; Wiersholm;

Clients: Akastor; Baker Hughes Inc.; DNB Bank ASA; DNB Markets; Nordea Bank AB;

Federica Tiefenthaler

Author: Federica Tiefenthaler