US oilfield services giant SLB announced on Tuesday that it had reached an agreement to acquire ChampionX in a transaction to be financed entirely by shares.

In a press release, SLB states that it intends to offer 0.735 of its common shares for each share held by the shareholders of this specialist in production technologies for the oil and gas sector.

Following the transaction, ChampionX shareholders are expected to hold around 9% of the capital of the former Schlumberger.

The transaction, which should be completed by the end of the year, should generate, according to SLB estimates, some $400 million in annual synergies over three years via additional growth and cost reductions.

SLB added that it planned to distribute $7 billion over the next two years, including $3 billion in 2024 and $4 billion in 2025.

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