By Will Feuer


Oilfield services giant SLB said it has agreed to buy ChampionX in an all-stock deal valued at about $7.8 billion.

ChampionX shareholders will receive 0.735 SLB shares for each share of ChampionX they already own. Once the deal is complete, ChampionX shareholders will own about 9% of the combined company. SLB shares closed on Monday at $55.22 and ChampionX at $35.40.

SLB Chief Executive Olivier Le Peuch said the deal will expand SLB's presence in the less cyclical and growing production and recovery space. Still, he said the company will continue to focus on accelerating decarbonization and emissions reduction in SLB's core oil-and-gas business.

"Our customers are seeking to maximize their assets while improving efficiency in the production and reservoir recovery phase of their operations," he said.

ChampionX provides chemistry solutions, artificial lift systems and other equipment to help companies drill for and produce oil and gas.

SLB said it expects to realize annual pretax synergies of about $400 million within three years after the deal closes. The benefit will come from both revenue growth and cost savings, the company said.

SLB said it expects the deal to close this year. Separately, SLB said it plans to return $7 billion to shareholders over the next two years.


Write to Will Feuer at Will.Feuer@wsj.com


(END) Dow Jones Newswires

04-02-24 0814ET