Schlumberger acquires rival Smith International for $11.3 billion
22 Feb 2010
Schlumberger, the world's largest oilfield services company, yesterday enterd into a deal to acquire smaller rival Smith International for $11.3 billion in an all-stock transaction.
The acquisition will create an industry giant with revenues double that of its nearest rival Halliburton Co.
Thye two companies had been in engaged in advanced talks during the weeks preceeding yesterday's announcement by Schlumberger (See: Schlumberger in advanced talks to acquire Smith International: report)
The deal, requiring the approval of the regulators and shareholders, will be Schlumberger's biggest acquisition in its 84-year history and will also be the biggest US merger and acquisition so far this year.
Under the deal, shareholders of Houston, Texas-based Smith will receive 0.6966 Schlumberger share for each Smith share they own-a 37.5 per cent premium over Thursday's share price of Smith.
Upon closing of the transaction, expected in the second half of this year, Smith stockholders collectively will own 12.8 per cent of Schlumberger's outstanding shares of common stock.
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