Schlumberger has announced it will not extend its pending $1.7bn bid to acquire a stake in Russian firm Eurasia Drilling Company after months of delays and uncertainty.
According to Schlumberger, the current extension is set to expire on 30 September.
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The company said it will instead focus on other mergers and acquisitions opportunities.
Signed by the companies in January, the agreement extends the long-term relationship enjoyed by the parties within the strategic alliance that originally established in 2011. However, Russia has not yet given approval for the bid and there is uncertainty over whether it will.
Schlumberger wanted a minority equity ownership interest of 45.65% in Eurasia Drilling through one or more subsidiaries in exchange for consideration of $22 per share.
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In April, Eurasia Drilling agreed to extend a deadline on a proposed deal to sell a stake to Schlumberger from 30 April to 31 May.
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By GlobalDataThe company added that regarding the proposed transaction, both companies are cooperating with the Russian Federal Anti-Monopoly Service and the Commission on Foreign Investment.
Image: Schlumberger Solutions Center, the headquarters of Schlumberger. Photo: courtesy of WhisperToMe.
