Schlumberger-Cameron Merger Gets Clearance from China
World’s largest oilfield services company Schlumberger Limited SLB and leading flow equipment products provider Cameron International Corp. CAM jointly announced that they have received unconditional clearance from the Chinese Ministry of Commerce (MOFCOM) for their $14.8 billion merger.
The MOFCOM approval fulfills the last major closing condition for the proposed merger. Hence, the parties intend to close their transaction on Apr 1, 2016, subject to the effective fulfillment of all customary conditions of the agreement.
The panel does not expect the proposed merger to raise any concerns in terms of competition given the diverse nature of activities in which the companies are involved. This has, therefore, encouraged MOFCOM to confidently provide unconditional approval for the expected combination post a Phase 1 review.
The proposed acquisition, first announced in Aug 2015, was approved by the U.S. Department of Justice (DOJ) without any clauses in mid-November. Thereafter, Cameron shareholders voted in favor of the merger on Dec 17, 2015. The deal also obtained antitrust clearances in Canada, Brazil, Russia and Mexico. Clearance from the European Commission (EU) was received in Feb 2016.
The clearance from MOFCOM was the last regulatory approval needed by the companies to close the deal. Authorities in China began their Phase 1 review process on Feb 4, 2016.
Houston-based Schlumberger provides technology, project management and information services to the global oil and gas industry.
Cameron is a leading manufacturer of pressure control equipment used in onshore, offshore, and subsea applications for oil and gas drilling, production and transmission.
Currently, Schlumberger carries a Zacks Rank #5 (Strong Sell). Some better-ranked players from the energy sector are SolarEdge Technologies, Inc. SEDG and Enviva Partners, LP EVA. Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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