Schlumberger Ltd. has agreed to buy Cameron International Corp. in a deal valued at $14.8 billion. Company officials said the acquisition will position Schlumberger to better compete in the oil and gas industry’s current price environment.
“With oil prices now at lower levels, oil field services companies that deliver innovative technology and greater integration while improving efficiency…will outperform the market,” said Paal Kibsgaard, Schlumberger chief executive officer.
He added that the combination of Schlumberger’s reservoir and well technologies with Cameron’s surface, drilling, and flow-control expertise will lead to the industry’s next “breakthrough” technology as well as a streamlined supply chain and improved manufacturing processes.
Schlumberger’s offer values Cameron at $12.74 billion, based on the company’s diluted shares as of June 30. Cameron shareholders will get $14.44 in cash and 0.716 of a Schlumberger share for each share held.
Schlumberger said it expects the deal to add to earnings by the end of the first year after closing, which is expected in first-quarter 2016. The deal is subject to Cameron shareholder and regulatory approvals.
Contact Michael T. Slocum at [email protected].
