Towers

The US Department of Justice has given unconditional approval for the proposed $14.3bn merger between oilfield services company Schlumberger and equipment manufacturer Cameron International.

According to Schlumberger, the closing of the merger is subject to approval by stockholders of Cameron as well as waiver of the other closing conditions that are outlined in the merger agreement.

Cameron stockholders are set to consider and vote upon the proposed adoption of the agreement and the plan of merger between the companies during a meeting that will be held on 17 December.

Schlumberger and Cameron, which expect to close the merger in the first quarter of 2016, will continue to operate as separate and independent companies until that time.

"We believe that the next industry technical breakthrough will be achieved through integration."

Upon closing of the transaction, Cameron shareholders are expected to own around 10% of Schlumberger’s outstanding shares of common stock.

The transaction will unite two technology portfolios into a ‘pore-to-pipeline’ products and services offering to the global oil and gas industry, Schlumberger said.

When the agreement was announced in August, Schlumberger chairman and CEO Paal Kibsgaard said: "With oil prices now at lower levels, oilfield services companies that deliver innovative technology and greater integration while improving efficiency, which our customers increasingly demand, will outperform the market.

"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."


Image: Park Towers South, Houston, Texas which houses the headquarters of Cameron International Corporation. Photo: courtesy of WhisperToMe