SLB Announces Groundbreaking Acquisition of ChampionX in a transformative all-stock transaction. This strategic move not only solidifies SLB's leadership in the production space but also promises to enhance customer value through integrated solutions, leveraging world-class production chemicals, artificial lift technologies, and a focus on digital integration.
Key Highlights about the transaction:
1- In terms of shareholder exchange, ChampionX shareholders will receive 0.735 SLB shares for each share of ChampionX, translating to approximately 9% ownership of SLB’s outstanding common stock.
2- With respect to value creation, the acquisition leverages both companies' production-focused leadership, unmatched technology portfolios, and innovative capabilities, poised to drive immense value for customers and stakeholders.
3- Regarding the decarbonization and growth, SLB aims to meet the growing energy demand while accelerating decarbonization and emissions reduction, especially in the less cyclical production and recovery space.
4- In light of synergies, anticipated annual pre-tax synergies of ~$400 million within three years through revenue growth and cost savings.
5- As for shareholder returns, SLB commits to returning $7 billion to shareholders over the next two years, targeting $3 billion in 2024 and $4 billion in 2025.
About ChampionX: A global leader in oilfield technology, ChampionX is renowned for its innovative solutions in production optimization, specializing in chemical technologies and services that ensure efficient, sustainable, and safe energy production. Their commitment to excellence and sustainability has positioned ChampionX as a crucial player in the energy sector, focusing on unlocking energy with leading edge technologies and services.
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Very rewarding to see the results of all the hard work from Ofri Porat and John Sengenberger on this project!