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Oilfield services giant Schlumberger inks new acquisition deal

Xinhua, August 27, 2015 Adjust font size:

Schlumberger, the world's largest oilfield services company, on Wednesday announced that it had reached an acquisition deal with oilfield equipment maker Cameron International Corp.

In accordance with the agreement, Schlumberger will pay about 12.71 billion U.S. dollars to buy Cameron International. The acquisition is designed to streamline Schlumberger's supply chains and offer cost-effective services to oil and gas customers.

According to local TV station ABC13 reports, the Houston-based Cameron International Corp. shareholders will receive 14.44 U.S. dollars in cash and 0.716 Schlumberger shares for each share of Cameron. Upon completion of the acquisition, Cameron shareholders will own about 10 percent of the combined company.

"We believe that the next industry technical breakthrough will be achieved through integration of Schlumberger's reservoir and well technologies with Cameron's leadership in surface, drilling, processing and flow control technologies," Schlumberger Chairman and Chief Executive Officer Paal Kibsgaard said in a written statement Wednesday.

The deal, valued at 14.8 billion U.S. dollars, including the assumption of 1.1 billion U.S. dollars in debt, is expected to add to Schlumberger's earnings per share in the first year after closing.

Both companies' boards have approved the acquisition, which is expected to close in the first quarter of next year, but it still needs the nod from Cameron shareholders.

The deal, the latest example of energy companies joining forces to cope with slumping oil prices, has received positive reaction from analysts. Endit