Date
26 March 2017
A Schlumberger employee checks a tank valve, The world's top oilfield services company is scrambling to offer a broader range of products at lower prices to oil companies slashing budgets. Photo: Bloomberg
A Schlumberger employee checks a tank valve, The world's top oilfield services company is scrambling to offer a broader range of products at lower prices to oil companies slashing budgets. Photo: Bloomberg

Schlumberger to buy oilfield gear maker Cameron for US$14.8 bln

Schlumberger Ltd. will buy equipment maker Cameron International Corp. for US$14.8 billion or what it was worth when oil prices were US$100 a barrel.

The acquisition comes as the world’s top oilfield services company scrambles to offer a broader range of products at lower prices to oil companies slashing budgets.

It’s the second big merger among energy services companies since crude prices entered a 60 percent slide last year.

Schlumberger said the acquisition will allow it to bundle its offerings, which range from surveying a site to drilling wells, with ones from Cameron that include pressure valves and blowout preventers, one of which was at BP’s Macondo well that exploded in 2010.

The two companies set up a joint venture, OneSubsea, to target the deepwater industry in 2012.

They have been eyeing each other since then, a person familiar with the deal, according to a person familiar with the two companies who spoke on the condition of anonymity.

“The deal should allow a more complete solution to customers and should allow SLB to grow market share,” said BMO Capital Markets analyst Daniel Boyd. “Smaller companies offering discrete products and services will likely be at a disadvantage going forward.”

Schlumberger said the combined company would have pro-forma revenue of US$59 billion in 2014.

That is 20 percent more than Schlumberger’s revenue for 2014 and compares with US$57.42 billion generated together by Halliburton Co. and Baker Hughes Inc.

Halliburton and Baker Hughes, Schlumberger’s rivals, agreed to a US$35 billion tie-up in November.

The Halliburton and Baker Hughes deal is yet to close as U.S. antitrust enforcers believe the US$35 billion merger will lead to higher prices and less innovation, according to a source. 

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