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Oil equipment is seen in a Baker Hughes yard in Williston, North Dakota. REUTERS/Andrew Cullen/File Photo

General Electric, banking on a recovery in oil prices, said on Monday it would merge its oil and gas business with No. 3 oilfield services provider Baker Hughes.

GE will own 62.5 percent of the new company, which will have combined revenue of $32 billion, while Baker Hughes shareholders will own 37.5 percent.

The deal comes after the oil giant's planned $34 billion merger with Halliburton collapsed earlier this year due to regulatory opposition.

Baker Hughes shareholders will get a special one-time cash dividend of $17.50 per share after the deal closes.