Schlumberger Limited recently announced their latest acquisition of Cameron International for $12.7 billion. The announcement, which aims to unite a conclusive stock and cash merger agreement, was made on Wednesday.
Based on the agreement terms of the world's largest oilfield services company, Schlumberger Limited and Houston-based Fortune 500 Company, Cameron International, shareholders of Cameron are receiving 0.716 shares of Schlumberger common stock and $14.44 cash payment in exchange for each share of Cameron.
Press Examiner also revealed that Cameron shareholders will own almost 10 percent of Schlumberger Ltd.'s outstanding stock once the deal closes.
The multibillion merger comes during the time when oil prices are usually low. According to Financial Times, the deal, which will create a company with 2013 pro-forma revenue of $51.8 billion, will launch a new era of complete drilling and production system performance further enabled by instrumentation, software and automation.
"This agreement with Cameron opens new and broader opportunities for Schlumberger," Schlumberger Chairman/CEO Paal Kibsgaard said.
Due to the uncertainties of crude oil prices, it appears quite impossible for energy services companies to grow organically. Hence, the mergers and acquisitions activities in the industry have gone up significantly over the past year since the pursuit for inorganic growth.
Meanwhile, Cameron will join Schlumberger as its fourth product group and will be spearheaded by Cameron's president and chief operating officer Scott Rowe. The value of the acquisition, which is at $12.74 billion, is based on the company's diluted shares as of June 30.
Schlumberger expects the merger to be an addition to earnings per share within the 1st year after closing, The Market Business noted. The deal will merge two supportive technology portfolios into a
Since the announcement of the Schlumberger-Cameron merger, the market will be offered an integrated platform by building on its deepwater partnership as well as to create value for its shareholders.
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