USA clears $14.3bn merger between Schlumberger and Cameron

Schlumberger Limited – Cameron International Corporation Deal Receives Clearance From Regulators

The department has not put any conditions on the pending transaction and has allowed early completion of the waiting period, which is a necessary condition of the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Under the proposed deal, Cameron investors will receive $14.44 in cash and 0.716 of Schlumberger stock for each Cameron share they own. The two companies have also been working together on the joint venture OneSubsea for more than two years.

When announcing the deal, Schlumberger Chief Executive Officer Paal Kibsgaard said innovation and integration would help companies like his survive the market downturn.

The exchange ratio and cash amount of shares is already fixed when the deal was announced; this will prevent the value of the merger to remain unchanged if there is any fluctuation in the stock price of either company.

Cameron stockholders are set to consider and vote upon the proposed adoption of the agreement and the plan of merger between the companies during a meeting that will be held on 17 December.

In Tuesday trading, Schlumberger shares fell $1.59 to $76.74 and Cameron fell $1.20 to $67.15.

The agreement is expected to complete in the first quarter of next year.

According to Schlumberger, the closing of the merger is subject to approval by stockholders of Cameron as well as waiver of the other closing conditions that are outlined in the merger agreement.

Schlumberger, the world's largest oilfield services company, proposed the acquisition of smaller rival company Cameron for US$12.7 billion.