General Electric in talks over Baker Hughes deal

US industrial giant General Electric has held talks with Baker Hughes on a potential merger agreement.

Reports suggest that GE is prepared to fork out more than $20bn for the company, in a move that could radically alter the structure of both firms.

General Electric have announced that they are discussing a variety of options for the merger, but that an outright acquisition is not on the table.

"We are in discussion with Baker Hughes on potential partnerships," a GE spokeswoman said

"While nothing is concluded, none of these options include an outright purchase," the statement added.

Houston-based Baker Hughes has a market capitalisation of around $23bn, and posted revenue of $15.7bn in 2015.

In 2014, it agreed to be acquired by rival Halliburton for $35bn, but the US Justice Department blocked the deal, which ultimately broke down.