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Investing.com -- Flowserve Corporation (NYSE:FLS) stock surged 8.5% after the flow control products provider announced it has terminated its previously announced merger agreement with Chart Industries , Inc. (NYSE:GTLS).
The termination follows Flowserve’s decision not to submit a revised offer after Chart’s Board determined that an unsolicited acquisition proposal from Baker Hughes (NASDAQ:BKR) constituted a "superior proposal" under the terms of their merger agreement. As a result, Flowserve will receive a $266 million termination payment.
"Flowserve is executing from a position of clear strength, driven by sustained financial momentum, impressive operational performance, and continued robust global demand for our mission-critical flow control solutions across the industrial spectrum," said Scott Rowe, Flowserve’s President and Chief Executive Officer.
The company cited its commitment to financial discipline and confidence in its standalone business prospects as reasons for not pursuing a revised offer. Flowserve emphasized the successful execution of its "3D growth strategy" focused on diversification, decarbonization, and digitization.
The company also highlighted its strong free cash flow generation and plans to invest in innovation and strategic initiatives that support customer needs and global sustainability trends. Flowserve separately announced its financial results for the second quarter ended June 30, 2025, on the same day.
The market’s positive reaction suggests investors are supportive of Flowserve’s decision to maintain its independent course rather than enter a bidding war for Chart Industries.
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