Schlumberger has announced that it has closed its merger with oilfield service provider Smith International, Inc. As previously announced, each Smith stockholder will receive 0.6966 shares of Schlumberger common stock in exchange for each Smith share, with cash paid in lieu of any fractional shares of Schlumberger common stock.
Schlumberger has issued approximately 176 million shares pursuant to the merger, representing a transaction value of approximately US$11 billion. As a result, former Smith stockholders own approximately 12.9% of Schlumberger’s outstanding shares of common stock.
The merger widens Schlumberger’s lead as the world’s largest oilfield services company based on revenue and market capitalisation, the company said in a statement. Smith’s drilling technologies, other products and expertise complement a variety of Schlumberger technology offerings, while the geographical footprint of Schlumberger will enable the merged companies to extend joint offerings worldwide.
Andrew Gould, chairman and chief executive officer of Schlumberger, commented: “I am extremely pleased to welcome Smith employees, customers and shareholders to Schlumberger. We are ready to begin the process of realising the synergies made possible by this merger and our focus in the near term is on the execution of plans that have been laid out these past few months while continuing to deliver safety and quality in our field operations. Beyond the near term, the merger will allow us to address new markets and develop new technologies, and employees from both companies will have key roles to play in unlocking the value brought by the combination.”
John Yearwood, former chief executive officer of Smith International, said: “This is an exciting time for all the former Smith International employees as we aggressively expand our service offerings through the rapid implementation of the identified growth strategies while continuing to focus on our customers’ everyday needs. The quality of the integration planning process has been outstanding and everyone is looking forward to exceeding expectations.”
