Schlumberger Announces Agreement to Acquire Cameron

Schlumberger Limited and Cameron  today jointly announced a definitive merger agreement in which the companies will combine in a stock and cash transaction. The agreement was unanimously approved by the boards of directors of both companies.

Under the terms of the agreement, Cameron shareholders will receive 0.716 shares of Schlumberger common stock and a cash payment of $14.44 in exchange for each Cameron share.

Based on the closing stock prices of both companies on August 25, 2015, the agreement places a value of $66.36 per Cameron share, representing a 37.0% premium to Cameron’s 20-day volume weighted average price of $48.45 per share, and a 56.3% premium to Cameron’s most recent closing stock price of $42.47 per share. Upon closing, Cameron shareholders will own approximately 10% of Schlumberger’s outstanding shares of common stock.

Bullet points from the Schlumberger website include;

• Offers new growth opportunities by creating the industry’s first complete drilling and production systems
• Integrates complementary downhole and surface offerings through software optimization and automation
• Total transaction value of $14.8 billion as of August 25, 2015
• Cameron shareholders to receive 0.716 Schlumberger shares and $14.44 in cash for each share of Cameron
• Transaction expected to be accretive to Schlumberger earnings per share in first year after closing
• Combined company expects $300 million and $600 million in synergies in first and second years

 By Roughneck City

Source: Schlumberger