Schlumberger to Buy Cameron International for $12.7 Billion -- Update
August 26 2015 - 7:20AM
Dow Jones News
By Lisa Beilfuss
Schlumberger Ltd. on Wednesday said it agreed to buy Cameron
International Corp. for about $12.74 billion in cash and stock, the
latest move by the world's biggest oil-field services company as
the industry struggles with lower prices and rising supply.
The price tag values Houston-based Cameron at $66.36 a share, a
56.3% premium to Tuesday's closing price. Amid the downturn in the
energy sector, Cameron shares have fallen 42% over the past 12
months.
Cameron shareholders will receive $14.44 in cash and 0.716
Schlumberger shares for each share of Cameron. After completion,
Cameron holders will own about 10% of the combined company.
With oil prices now at lower levels, Schlumberger Chief
Executive Paal Kibsgaard said, "this agreement with Cameron opens
new and broader opportunities for Schlumberger."
The Cameron transaction follows Halliburton's $35 billion deal
unveiled late last year to acquire smaller oil-field services rival
Baker Hughes Inc. and Royal Dutch Shell PLC's nearly $70 billion
offer for Britain's BG Group PLC in April.
Paris-based Schlumberger said it anticipates pretax synergies of
about $300 million in the first year and $600 million in the second
year after the deal closes. The transaction will add to per-share
profit by the end of the first year, Schlumberger said.
The deal, subject to approval by Cameron shareholders as well as
regulatory clearance, is expected to be completed in the first
quarter of 2016. On a pro forma basis, the combined company had
2014 revenue of $59 billion.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
August 26, 2015 07:05 ET (11:05 GMT)
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