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First on CNBC: CNBC Excerpts: Jeff Immelt, Lorenzo Simonelli and Martin Craighead Talk GE and Baker Hughes Deal on CNBC’s “Squawk on the Street”

WHEN: Today, Monday, October 31st

WHERE: CNBC's "Squawk on the Street"

Following are excerpts from the unofficial transcript of a FIRST ON CNBC interview with GE Chairman and CEO Jeff Immelt, GE Oil & Gas President and CEO Lorenzo Simonelli and Baker Hughes Chairman and CEO Martin Craighead on CNBC's "Squawk on the Street" (M-F, 9AM-11AM ET) today, Monday, October 31st. Following are links to the video on CNBC.com: http://video.cnbc.com/gallery/?video=3000563930 and http://video.cnbc.com/gallery/?video=3000563928.

All references must be sourced to CNBC.

IMMELT ON THE DEAL

BY THIS POINT, YOU KNOW, I'VE SEEN EVERY DIFFERENT KIND OF TRANSACTION. I THINK THIS GIVES US AN OPPORTUNITY TO CREATE ALL THE SYNERGIES OF A COMBINED GE AND BAKER HUGHES, WHICH WE THINK ARE SUBSTANTIAL. AND AT THE SAME TIME GIVES UPSIDE FOR BAKER HUGHES SHAREHOLDERS, GIVE UPSIDE FOR GE SHAREHOLDERS, AND ALLOWS US TO PRESERVE SOME FLEXIBILITY AROUND CAPITAL ALLOCATION THAT WE THINK IS IMPORTANT.

IMMELT ON THE INDUSTRY

LET'S SAY THE INDUSTRY REMAINS TOUGH. THIS IS STILL VALUE ACCRETIVE TO BOTH INVESTORS IN A TOUGH OIL PRICE ENVIRONMENT. IF THE PRICING GETS BETTER, IT ALLOWS US TO BENEFIT FROM THAT, AS WELL. IT'S A VERY DIVERSIFIED PORTFOLIO IN TERMS OF SHORT CYCLE AND LONGER CYCLE OPERATIONS, SO I THINK IT JUST GIVES US A CHANCE TO WEATHER THE CYCLE BETTER.

CRAIGHEAD ON THE DEAL

STRUCTURING IT THIS WAY TAKES THAT TIMING RISK COMPLETELY OFF THE TABLE. AND THIS IS SO VALUE ENHANCING, YOU KNOW, IT'S A SCOPE PLAY VERSUS JUST A SCALE PLAY. IT'S ALL ABOUT, YOU KNOW, BEING ABLE TO TAKE IT FROM MOLECULE TO MEGAWATT. AND OUR CUSTOMERS, AS JEFF APPROPRIATELY SAID, ARE REALLY CHANGING. THEY'VE GOT TO DRIVE EFFICIENCY OUT OF THEIR CORE ASSET, WHICH IS THE RESERVOIR. WE BRING THAT EXPERTISE, THAT'S OUR DOMAIN.

SIMONELLI ON FULL STREAM

WE ARE INTRODUCING A CONCEPT OF FULL STREAM, GOING ACROSS THE VALUE CHAIN, AND THEN ALSO PROVIDING PRODUCTIVITY TO OUR CUSTOMERS BY THE USAGE OF BIG DATA. SO THE CONFIDENCE IS THERE. I THINK WE'VE GOT A PROVEN TRACK RECORD. AND THE TEAMS, THE CULTURAL FIT BETWEEN THE TEAMS, IS ALREADY THERE. AND WE'VE TAKEN A LOOK AT THOSE COST SYNERGIES ALREADY.

IMMELT ON SYNERGIES

OUR TRACK RECORD SPEAKS FOR ITSELF. THE NET PRESENT VALUE OF THESE SYNERGIES IS $14 BILLION, OF WHICH BAKER HUGHES SHAREHOLDERS SHOULD SEE 5, GE LET'S SAY 9 IN TERMS OF THE VALUE SPLIT. SO AGAIN, I THINK WE'RE VERY CONFIDENT AND IN MANY WAYS ALSTOM IS A GREAT PROOF POINT IN TERMS OF WHAT WE KNOW IS POSSIBLE HERE.

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