SLB To Acquire ChampionX In All-Stock Deal; To Return $7 Bln To Shareholders Over Next Two Years
(RTTNews) - Oilfield services company Schlumberger Ltd., doing business as SLB (SLB), and ChampionX Corp. (CHX) announced Tuesday a definitive agreement for SLB to purchase ChampionX in an all-stock transaction.
The acquisition strengthens SLB as a leader in the production space, with world-class production chemicals and artificial lift technologies. The combined portfolios will drive customer value through deep industry expertise and digital integration, as well as enhanced equipment life and production optimization.
Under the terms of the agreement, ChampionX shareholders will receive 0.735 shares of SLB common stock in exchange for each ChampionX share. At the closing of the transaction ChampionX shareholders will own approximately 9% of SLB's outstanding shares of common stock.
The agreement was unanimously approved by the ChampionX board of directors. SLB expects to realize annual pretax synergies of approximately $400 million within the first three years post-closing through revenue growth and cost savings.
The transaction is subject to ChampionX shareholders' approval, regulatory approvals and other customary closing conditions. It is anticipated that the closing of the transaction will occur before the end of 2024.
SLB also announced today that it will return $7 billion to shareholders over the next two years. SLB will increase its 2024 shareholder returns to a target of $3 billion as well as set a target for 2025 shareholder returns of $4 billion.
SLB And TotalEnergies Ink 10-year Partnership To Co-develop Scalable Digital Solutions
SLB OneSubsea Granted Contract By Equinor For Phase 3, Stage 2 Of North Sea Troll Project
SLB OneSubsea And Subsea7 Ink Long-Term Strategic Collaboration Deal With Equinor
TSX Ends Notably Lower As Stocks Drop On Interest Rate Concerns
Dollar Climbs Higher After Buoyant Jobs Data
U.S. Stocks Close Sharply Lower As Strong Jobs Data Raises Interest Rate Concerns
Swiss Market Ends Notably Lower
