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Schlumberger To Buy Cameron International In Deal Worth $12.71 Billion

The acquisition is likely to mean further layoffs in Houston’s energy services sector.



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Schlumberger is buying Houston-based Cameron International in a cash-and-stock deal valued at more than $12.7 billion. Cameron shareholders will own about 10 percent of Schlumberger's outstanding stock once the transaction closes.

The acquisition would create an oilfield equipment and service powerhouse, but it's also likely to mean further layoffs.

"This is just another reflection of the anticipated and being currently experienced decline in oil prices," says Craig Pirrong, professor of finance at the University of Houston's Bauer College of Business. "There is overcapacity in the industry because future drilling activity is expected to be lower. And so one of the purposes of the merger is to eliminate some of that excess capacity, and unfortunately job losses are part of that."

Schlumberger says it expects to save roughly $900 million in the first two years after it acquires Cameron. The two companies put the acquisition's total value at $14.8 billion.

Both companies' boards unanimously approved the acquisition, which is expected to close in the first quarter of 2016. It still needs approval from Cameron's shareholders.

Schlumberger has principal offices in Paris, Houston, London, and the Hague.

Andrew Schneider

Andrew Schneider

Politics and Government Reporter

Andrew Schneider is the senior reporter for politics and government at Houston Public Media, NPR's affiliate station in Houston, Texas. In this capacity, he heads the station's coverage of national, state, and local elections. He also reports on major policy issues before the Texas Legislature and county and city governments...

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