European Commission approves $14.3bn merger between Schlumberger and Cameron
The European Commission (EC) has approved the proposed $14.3bn merger between oilfield services company Schlumberger with Cameron International.
The unconditional clearance from the EC follows the approval by the US Department of Justice in November 2015.
In addition to securing approval from stockholders of Cameron in December, the merger secured antitrust approvals in Canada, Brazil, Russia and Mexico.
The European antitrust body said: "The Commission concluded that the proposed acquisition would raise no competition concerns, given the very limited overlaps between the companies' activities and the modest increment in market shares brought about by the transaction."
In August, Schlumberger has agreed to acquire Cameron by issuing each shareholder of Cameron with 0.716 shares of Schlumberger common stock and $14.44 cash for each share.
Schlumberger earlier said that the deal aims to combine the technology portfolios of the two firms into a 'pore-to-pipeline' products and services for the global oil and gas industry.
Upon completion of the transaction scheduled in the first quarter of 2016, Cameron shareholders will own approximately 10% of outstanding shares of common stock of Schlumberger.
The merger however remains subject to other closing conditions that are outlined in the merger agreement.
When the agreement was announced, Schlumberger chairman and CEO Paal Kibsgaard said: "With oil prices now at lower levels, oilfield services companies that deliver innovative technology and greater integration while improving efficiency, which our customers increasingly demand, will outperform the market.
"We believe that the next industry technical breakthrough will be achieved through integration of Schlumberger's reservoir and well technologies with Cameron's leadership in surface, drilling, processing and flow control technologies."
Image: Cameron provides equipment for oil and gas industries. Photo: courtesy of num_skyman/ FreeDigitalPhotos.net.