General Electric Co. is combining its oil and gas business with Baker Hughes Inc. in a roughly $30 billion deal, according to The Wall Street Journal.

GE will contribute its oil and gas business and some cash to the new venture, while retaining the rights to majority ownership. The remainder will be publicly traded shares.

The merger will create a company with more than $25 billion in revenue that could cut costs to better compete with rivals. The move also sets GE up to benefit from the expected recovery in the industry without paying for Baker Hughes in full.

Learn more: The Wall Street Journal > GE Nears Deal to Combine Oil-and-Gas Business With Baker Hughes