General Electric could announce a $30 billion deal with Baker Hughes as early as Monday, according to the Wall Street Journal (WSJ).



GE is seeking to combine its own oil and gas business with the oilfield services provider, creating a new entity that would be controlled by GE, the WSJ reported on Sunday, citing anonymous sources.

In a statement last week, GE confirmed that it was discussing potential partnerships with Baker Hughes but ruled out an "outright purchase."

The new entity could yield more than $25 billion in revenue and allow GE to gain from an anticipated oil market recovery without paying for a full acquisition, the WSJ said.

Shares of both companies have so far cheered news of such a deal, with GE ending 2.1 percent higher on Friday, while Baker Hughes rallied 8.4 percent.

To read the full WSJ report, click here.

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