Baker Hughes (BHGE), a GE (GE) company, announced that its Board of Directors has authorized Baker Hughes, a GE company, LLC to repurchase up to $3B of its common units from BHGE and GE.

The company will use the proceeds from the sale of its BHGE LLC common units to repurchase its Class A shares. In addition, the company also announced its intention for BHGE LLC to issue new debt.

BHGE and BHGE LLC have also entered into an agreement with GE whereby BHGE LLC will repurchase its common units from GE on a pro rata basis and on the same terms as it repurchases common units from BHGE. The proceeds distributed to BHGE will be used to repurchase Class A shares on the open market or in privately negotiated transactions. The repurchases will not materially change BHGE and GE's relative economic interests in BHGE LLC or BHGE's Class A and Class B stockholders' relative voting interest.