Schlumberger in $14.8bn merger
28 Aug 2015
Oil and gas technology firm Schlumberger has acquired flow equipment provider Cameron in a deal worth $14.8 billion (£9.5bn).
As part of the acquisition, the two companies will effectively combine to create what Schlumberger says is the oil and gas industry’s first complete drilling and production systems.
Schlumberger chief executive officer Paal Kibsgaard said the deal with Cameron opens new and broader opportunities for the company.
We believe that the next industry technical breakthrough will be achieved through integration
Schlumberger CEO Paal Kibsgaard
“With oil prices now at lower levels, oilfield services companies that deliver innovative technology and greater integration while improving efficiency, which our customers increasingly demand, will outperform the market,” Kibsgaard said.
“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.”
Kibsgaard also said the acquisition will help Schlumberger achieve efficiency gains via lowering operating costs, streamlining supply chains, and improving manufacturing processes.
Jack Moore, chief executive officer of Cameron, said: “This exciting transaction builds on our successful partnership with Schlumberger on OneSubsea and will position Cameron for its next phase of growth.”
The acquisition, in which Cameron’s shareholders are set to receive 0.716 Schlumberger shares and $14.44 in cash for each share of Cameron they own, is expected to close in the first quarter of 2016.
