U.S. Markets open in 4 hrs 41 mins

C&J Energy's $2.8B Merger with Nabors Fracking Unit is Win-Win for Both


Houston oil services provider C&J Energy Services said it will combine with the completion and production businesses of Nabors Industries in a deal valued at about $2.8 billion. Nabors, which has been under pressure from shareholders to boost performance, will receive 62.5 million shares of a new C&J entity and $940 million in cash. C&J will see increased capacity for its hydraulic fracturing, coiled tubing and wireline services and diversity its operations. Claire Poole, energy correspondent for The Deal, explains how both companies win in this agreement and what it says about the oil and gas fracking business as a whole.