Sch­lum­berger set to buy Cameron In­ter­na­tional in US$12.71 bil­lion deal

The China Post - - WORLD BUSINESS -

Sch­lum­berger is buy­ing Cameron in a cash-and-stock deal val­ued at about US$12.71 bil­lion that would cre­ate an oil­field equip­ment and ser­vice pow­er­house.

Cameron was the maker of the blowout pre­ven­ter on the ill-fated Deep­wa­ter Hori­zon rig, which was rocked by an ex­plo­sion and fire in 2010 that killed 11 work­ers and touched off an enor­mous oil spill.

Cameron In­ter­na­tional Corp. share­hold­ers will re­ceive 0.716 shares of Sch­lum­berger com­mon stock and a cash pay­ment of US$14.44 for each of their shares. That equates to a value of US$66.36 per Cameron share. That’s a 56 per­cent pre­mium to the Hous­ton com­pany’s Tues­day clos­ing price of US$42.47.

Sch­lum­berger and Cameron put the ac­qui­si­tion’s to­tal value at US$14.8 bil­lion.

The com­bined com­pany had 2014 pro forma rev­enue of US$59 bil­lion.

“We be­lieve that the next in­dus­try tech­ni­cal break­through will be achieved through in­te­gra­tion of Sch­lum­berger’s reser­voir and well tech­nolo­gies with Cameron’s lead­er­ship in sur­face, drilling, pro­cess­ing and flow con­trol tech­nolo­gies,” Sch­lum­berger Chair­man and CEO Paal Kib­s­gaard said in a writ­ten state­ment on Wed­nes­day.

Cameron share­hold­ers will own about 10 per­cent of Sch­lum­berger Ltd.’s out­stand­ing stock once the trans­ac­tion closes.

The deal is ex­pected to add to Sch­lum­berger’s earn­ings per share in the first year af­ter clos­ing.

Both com­pa­nies’ boards unan­i­mously ap­proved the ac­qui­si­tion, which is ex­pected to close in 2016’s first quar­ter. It still needs ap­proval from Cameron share­hold­ers.

Sch­lum­berger has prin­ci­pal of­fices in Paris, Hous­ton, Lon­don and The Hague.

Cameron shares j umped US$ 17.46, or 41 per­cent, to US$ 59.93, while Sch­lum­berger shares fell US$2.43, or 3.4 per­cent, to US$70.09.


This Oct. 18, 2007, file photo, shows a Sch­lum­berger logo on a tower at the en­trance to Sch­lum­berger’s Sugar Land, Texas cam­pus.

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