Oilfield services
company Schlumberger Ltd (SLB.N) agreed to buy Cameron International
Corp (CAM.N), which makes equipment used by oilfield services providers,
in a deal valued at $14.8 billion (9.5 billion pounds) to cut costs
amid weak drilling activity.
Cameron
makes products, such as blowout preventers and valves, that control
pressure at oil and gas drill sites. Schlumberger provides oil and gas
producers with a full array of services from surveying a site to
drilling and completing wells.
The two companies had combined their subsea businesses in November 2012 to create a joint venture to drill in deeper waters.
Besides
cutting operating costs, the acquisition will also help Schlumberger
streamline its supply chains and improve its manufacturing processes,
Chief Executive Paal Kibsgaard said in a statement.
The cash-and-stock offer values Cameron at $66.36 per share, a premium of 56.3 percent to Cameron's Tuesday close.
Cameron's shares shot up to $62.50 in premarket trading on Wednesday. Schlumberger's shares fell 1.4 percent to $71.50.
NYSETue, Aug 25, 2015 4:03 PM EDT
www.credit.com
Reporting: Reuters.
Review: Emerging Market Formulations and Research Unit, FLAGSHIP RECORDS.
For the #FacebookTeam.