Schlumberger has received approval from the European Commission (EU) for the US$14.8 billion takeover of Cameron International, after the EU concluded that the proposed acquisition would raise no competition concerns.
 |
|
Schlumberger chairman and CEO Paal Kibsgaard. Image courtesy of Schlumberger. |
“The Commission concluded that the proposed acquisition would raise no competition concerns, given the very limited overlaps between the companies' activities and the modest increment in market shares brought about by the transaction,” the EU said in a statement.
Both companies anticipate the merger to close this quarter.
In mid-December, Cameron stockholders approved the takeover, days after Schlumberger announced its intention to issue five tranches of senior notes worth $6 billion to help fund the pending merger.
The proposed takeover, first announced in August, was cleared by the US Department of Justice (DOJ) without any conditions in mid-November.
In its Q4 and full year 2015 report, Schlumberger said that in anticipation of an extended activity weakness in 1H 2016, the oil services giant was implementing another significant adjustment to its cost and resource base during Q4, which included a further workforce reduction of 10,000 employees, as well as greater streamlining of its overhead, infrastructure and asset base. The company also posted more than a $1 billion loss in Q4 2015, compared to the previous year.
Read more:
Schlumberger in $1bn loss, 10,000 job cuts
Stockholders say yes to CAM-SLB merger
Schlumberger to raise $6 billion for merger
Subscribe
