ShareThis Page
Business Headlines

Oilfield giant Schlumberger to purchase Cameron in $12.71B deal

| Thursday, Aug. 27, 2015, 12:01 a.m.
FILE - This Oct. 18, 2007, file photo, shows a Schlumberger logo on a tower at the entrance to Schlumberger's Sugar Land, Texas campus.  Schlumberger is buying Cameron in a cash-and-stock deal valued at about $12.71 billion that would create an oilfield equipment and service powerhouse. Cameron International Corp. shareholders will receive 0.716 shares of Schlumberger common stock and a cash payment of $14.44 for each of their shares. That equates to a value of $66.36 per Cameron share. That's a 56 percent premium to the Houston company's Tuesday, Aug. 25, 2015  closing price of $42.47.(AP Photo/Pat Sullivan, File)
FILE - This Oct. 18, 2007, file photo, shows a Schlumberger logo on a tower at the entrance to Schlumberger's Sugar Land, Texas campus. Schlumberger is buying Cameron in a cash-and-stock deal valued at about $12.71 billion that would create an oilfield equipment and service powerhouse. Cameron International Corp. shareholders will receive 0.716 shares of Schlumberger common stock and a cash payment of $14.44 for each of their shares. That equates to a value of $66.36 per Cameron share. That's a 56 percent premium to the Houston company's Tuesday, Aug. 25, 2015 closing price of $42.47.(AP Photo/Pat Sullivan, File)

HOUSTON — Schlumberger is buying Cameron in a cash-and-stock deal valued at about $12.71 billion that would produce an oilfield equipment and service powerhouse.

Cameron was the maker of the blowout preventer on the ill-fated Deepwater Horizon rig, which was rocked by an explosion and fire in 2010 that killed 11 workers and touched off an enormous oil spill.

Cameron International Corp. shareholders will receive 0.716 shares of Schlumberger common stock and a cash payment of $14.44 for each of their shares. That equates to a value of $66.36 per Cameron share. That's a 56 percent premium on the Houston company's Tuesday closing price of $42.47.

Schlumberger and Cameron put the acquisition's total value at $14.8 billion.

The combined company had 2014 pro forma revenue of $59 billion.

“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,” Schlumberger Chairman and CEO Paal Kibsgaard said in a written statement Wednesday.

Cameron shareholders will own about 10 percent of Schlumberger Ltd.'s outstanding stock once the transaction closes.

The deal is expected to add to Schlumberger's earnings per share in the first year after closing.

Both companies' boards unanimously approved the acquisition, which is expected to close in the first quarter of next year. It needs approval from Cameron shareholders.

Schlumberger has principal offices in Paris, Houston, London and The Hague.

Cameron shares jumped $17.46, or 41 percent, to $59.93, and Schlumberger shares fell $2.43, or 3.4 percent, to $70.09.

TribLIVE commenting policy

You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.

We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.

While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.

We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers

We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.

We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.

We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.

We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.

click me