Schlumberger, the world’s largest oil services group, announces it has acquired energy equipment manufacturer Cameron International for US$14.8bn to create the industry’s first complete drilling and production systems. The transaction combines two complementary technology portfolios into a “pore-to-pipeline” products and services offering to the global oil and gas industry. The company expects synergies related to reducing operating costs, streamlining supply chains, and improving manufacturing processes, with a growing component of revenue synergies in the second year and beyond. The combined company had 2014 revenues of US$59bn. Schlumberger expects to realize pretax synergies of US$300m and US$600m in the first and second year, respectively.
The transaction is subject to Cameron shareholders’ approval, regulatory approvals and other customary closing conditions. It is anticipated that the closing of the transaction will occur in the first quarter of 2016.
The deal continues the consolidation trend in the oil and gas services industry as a result of the drop of oil price. Late in 2014, Halliburton proposed US$38bn to acquire Baker Hughes.