Schlumberger has backed-out of a previously announced $1.7bn deal to acquire a stake in Russian company Eurasia Drilling (EDC) after Russia failed to approve the deal by the deadline.
Eurasia Drilling said that the 30 September 2015 deadline has expired, so the proposed merger and related transaction with Schlumberger could not go through.
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Eurasia Drilling said in a statement: "Schlumberger and EDC have a long-standing relationship and strategic partnership in the provision of oilfield services to our mutual customers in Russia and the CIS.
On 25 September, Schlumberger said it would not extend its pending bid for a stake in EDC after months of delays.
Instead, the company said it would focus on other mergers and acquisitions opportunities.
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The agreement was signed by the companies in January and extends the relationship enjoyed by the parties within the strategic alliance that was originally established in 2011.
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By GlobalDataThe deal was accepted by EDC originally, yet was delayed following concerns in Moscow due to Western sanctions against Russia over Ukraine may hinder the company’s activities.
As of August 2015, EDC’s net income was $143m, 50% lower than August 2014.
Image: Schlumberger Solutions Center, the headquarters of Schlumberger. Photo: courtesy of WhisperToMe.
