Oil Services giant Schlumberger has completed its US$14.8 billion merger with rival Cameron International, less than a year after the deal was proposed.
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Schlumberger CEO Paal Kobsgaard, image from Schlumberger. |
The completion of the stock and cash deal, which will provide the industry’s first complete drilling and productions systems, became final about one week after receiving clearance from the Chinese Ministry of Commerce (MOFCOM).
“I am very pleased to welcome Cameron employees, customers and shareholders to Schlumberger. As a combined company, we will drive total system performance through a much closer integration between the surface and subsurface components of both drilling and production systems,” Paal Kibsgaard, Schlumberger chairman and CEO said. “We are ready to begin the process of realizing the synergies made possible by this merger and our focus in the near term is on the execution of our integration plans, while continuing to deliver safety and quality in our field operations.”
According to Schlumberger, the transaction combines two complementary technology portfolios into a pore-to-pipeline products and services offering to the global oil and gas industry. The merger will create technology-driven growth by integrating Schlumberger reservoir and well technology with Cameron wellhead and surface equipment, flow control and processing technology.
The takeover brings Schlumberger to a total 95,000 employees in 85 countries.
“This is an exciting time for all Cameron employees as we integrate our portfolio with Schlumberger technologies to deliver improved operational performance, higher levels of cost efficiency, and close commercial alignment through new risk-based business models, while continuing to focus on the needs of our customers,” Scott Rowe, former Cameron CEO.
Now that the merger is complete, Rowe has assumed the role of Schlumberger Cameron group president; in addition, Cameron shareholders will receive 0.716 shares of Schlumberger common stock and a cash payment of $14.44 in exchange for each Cameron share.
Last week, MOFCOM cleared the takeover, marking the last major step is the eight-month long process.
The proposal was announced in August 2015, with the US Department of Justice (DOJ), in November; both boards of directors announcing their unanimous approval in December; and the European Union’s approval in February.
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