The US cryogenic equipment maker said it had axed the Flowserve merger after its board determined that Baker Hughes had made a “superior” offer.

The deal values Chart’s equity at $210 a share – a 22% premium on its market capitalisation.

“This all-cash transaction with Baker Hughes delivers immediate value to Chart shareholders,” said Chart President and CEO Jill Evanko.

The transaction is expected to be completed by the middle of 2026.

Flowserve is set to receive a $266m termination payment. Scott Rowe, Flowserve CEO said, “The decision not to pursue a revised offer for Chart demonstrates our commitment to financial discipline, as well as our confidence in the growth prospects of our standalone business.”

Baker Hughes says the acquisition would support its ambitions to position itself as a “leading energy and industrial technology company,” by gaining Chart’s liquid hydrogen and LNG capabilities.

“The acquisition also delivers compelling financial returns for our shareholders,” said Baker Hughes CEO Lorenzo Simonelli, pointing to Chart’s $4.2bn revenues in 2024.

However, the events raise questions over Chart’s strategy. To publicly announce such a large merger, to only back-track and take an acquisition in the space of two months is highly unusual.

Under the original Flowserve deal, Chart would have been the majority shareholder, with the new company set to pool Flowserve’s experience in cryogenic valves and hydrogen fuelling systems with Chart’s wider expertise in clean energy and industrial gas.