Stephen Simpson, CFA
Mon, Mar. 28, 7:59 AM
- Schlumberger’s (NYSE:SLB) $12B takeover of Cameron International (NYSE:CAM) is set to close April 1 after the Chinese Ministry of Commerce cleared the proposed merger without any conditions.
- China's approval was the last major closing condition to the merger; the U.S. Justice Department signed off on the deal in November, finding that it did not violate antitrust laws.
- CAM says it is remaining neutral toward SLB's offer to purchase up to $1.2B in aggregate principal amount of CAM's outstanding senior notes in a tender offer in connection with the merger.
Fri, Feb. 5, 7:49 AM
- The European Union approves Schlumberger's (NYSE:SLB) pending acquisition of Cameron International (NYSE:CAM), saying it had no major competition concerns.
- The EU says CAM's and SLB's activities present limited overlaps in the markets of produced water treatment and on the drilling chokes market, and that the deal 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."
Mon, Jan. 25, 8:08 AM
- Schlumberger (NYSE:SLB) is set to gain unconditional approval from the European Union for its $14.8B takeover of equipment maker Cameron International (NYSE:CAM), Reuters reports.
- Antitrust experts have predicted that the deal would draw minimum scrutiny since the companies offer complementary product lines, while Halliburton's (NYSE:HAL) proposed $35B offer for Baker Hughes (NYSE:BHI) would face a tougher time because of concerns it could push up prices for oil and gas exploration in Europe.
- U.S. antitrust regulators cleared the deal without conditions last November.
Dec. 17, 2015, 3:52 PM
- Cameron (CAM -1.9%) shareholders easily approve Schlumberger's (SLB -2.3%) takeover of the company in a deal worth ~$12.7B, paving the way for the transaction to close early next year.
- The U.S. Department of Justice cleared the deal last month without conditions, but the companies still await regulatory approval from the European Commission as well as other jurisdictions that have not been publicly identified in documents.
- Once finalized, CAM shareholders will receive 0.716 SLB shares for every share of CAM plus $14.44 in cash.
Nov. 17, 2015, 6:30 PM
- Schlumberger’s (NYSE:SLB) proposed purchase of Cameron International (NYSE:CAM) is cleared by the U.S. Justice Department, putting the companies on track to close the deal early next year.
- The DoJ found that the transaction did not violate antitrust laws, and cleared the proposed merger without any conditions, the companies said.
- CAM shareholders still must sign off on the deal, and are expected to vote in a special meeting on Dec. 17; approval is not needed from SLB’s shareholders.
Sep. 4, 2015, 12:23 PM
- Sclumberger’s (NYSE:SLB) purchase of Cameron International (NYSE:CAM) should easily close, with optimism growing that Halliburton's (NYSE:HAL) bid for Baker Hughes (NYSE:BHI) also will close, and the deals mean more oil company M&A is on the way, FBR Capital analyst Thomas Curran believes.
- The wave of heavyweight deals likely is not over yet, Curran says, seeing Weatherford (NYSE:WFT) as the highest probability takeout with the broadest set of plausible strategic suitors; National Oilwell Varco (NYSE:NOV) is viewed as having a high likelihood of entering into a big deal, although probably as an acquirer, and FMC Tech (NYSE:FTI) could puruse a full combination with Technip, its 50/50% JV partner in Forsys Subsea.
Aug. 31, 2015, 9:15 AM
- Singapore's Keppel Offshore & Marine agrees to acquire Cameron International's (NYSE:CAM) offshore rig business for $100M.
- The business consists of CAM's LeTourneau jackup rig designs, its rig kit business and aftermarket services; Keppel says the LeTourneau designs have been popular with certain market segments and will help it expand its suite of jackup rig offerings.
- CAM is set to be acquired by Schlumberger in a $14.8B deal.
Aug. 28, 2015, 2:56 PM
- Schlumberger (SLB +2.7%) is offering more than $66 in cash and stock per share while takeover target Cameron International’s (CAM +2.5%) private market value may be only $63, according to Gabelli analysts who lower their recommendation on CAM to Hold from Buy.
- The firm says arbitrageurs can earn a respectable ~10% annualized return on the deal, assuming a successful close by the end of Q1 2016 and given the current $3.62 deal spread.
- However, the firm believes the deal makes strategic sense for both companies, combining SLB’s subsurface and wellbore expertise with the largest surface technology and second-largest subsea equipment manufacturer, and expects the deal will close with minimal regulatory scrutiny.
Aug. 28, 2015, 11:29 AM
- Traders willing to bet Halliburton's (HAL +1.4%) proposed deal for Baker Hughes (BHI +1.2%) can survive regulatory scrutiny stand to amass more than $3B in profit, and Schlumberger’s (SLB +1.9%) purchase of Cameron International (CAM +1.7%) could help their chances, according to a Bloomberg analysis.
- With SLB - already the world’s largest oilfield-services provider - getting even bigger, HAL and BHI could have a better argument that they need to merge to get stronger, and the deal could provide more incentive for contractors to bid on HAL and BHI assets as they seek to stay competitive; HAL and BHI have committed to divest as much as $7.5B in assets, and several buyers appear to be interested.
- HAL shares stand to drop sharply without a deal, it would not have the merger’s cost-cutting opportunities to shield it from the slump in oil prices and shrinking revenue, and it would have to pay a $3.5B breakup fee if the deal fails to gain regulatory approval.
Aug. 26, 2015, 3:25 PM
- Analysts say Schlumberger’s (SLB -4.2%) acquisition of Cameron International (CAM +41.7%) is not particularly surprising, given SLB's two years of experience working alongside CAM through their OneSubsea joint venture and track record of soaking up JV partners.
- The combination effectively allows the two companies to extract the type of cost savings found at OneSubsea across the rest of their businesses; SLB thinks it can find pretax benefits of $600M in the second year after the deal, most of which will come from cost-cutting.
- Citigroup says the deal will firmly establish SLB as the dominant and most diversified oilfield service provider, with total estimated revenues for the combined entity of $46B in 2015, a figure the prospective Halliburton (HAL +2.3%) and Baker Hughes (BHI +2.5%) combo cannot match.
- SLB is making a strategic bet on a recovery in deepwater drilling, even if not in 2016, Tudor Pickering says; with 7M-plus bbl/day of global oil production coming from deepwater reservoirs, it makes sense that offshore activity eventually will rebound.
- The deal is not likely to touch off an M&A wave in the oilfield services industry because the global crude slump has strained the finances of many companies, leaving few able to make such a move, says Edward Jones analyst Rob Desai.
- But several potential acquisition targets in the services industry are higher: OII +8.3%, DRQ +7.4%, FTI +6.5%, NOV +4.1%, FET +3%.
Aug. 26, 2015, 6:32 AM
- Schlumberger (NYSE:SLB) is acquiring oilfield equipment maker Cameron International (NYSE:CAM) in a stock and cash transaction valued at $14.8B.
- Under the terms of the agreement, Cameron shareholders will receive 0.716 shares of Schlumberger common stock and a cash payment of $14.44 for each share held.
- The deal represents a 56.3% premium to Cameron's closing stock price on Tuesday.
- CAM +41.4% premarket
Jan. 2, 2015, 9:07 AM
- Ingersoll-Rand (NYSE:IR) has completed its purchase of Cameron International's (NYSE:CAM) centrifugal compression division.
- The unit makes oil and gas separation equipment, heaters and water processing systems.
- SEC Form 8-K
- Previously: Ingersoll-Rand to purchase Cameron unit for $850M (Aug. 18 2014)
Nov. 14, 2014, 12:48 PM
- Oil services companies are mostly higher as Halliburton (HAL +1.7%) is indeed in talks to buy Baker Hughes (BHI +0.5%), a deal that would provide a jolt to oilfield services companies contending with falling oil prices: SLB +0.4%, OIS +1.2%, SPN +2.3%, CAM +0.2%, FTI -0.3%, NOV -0.6%.
- Sterne Agee analyst Stephen Gengaro calls a potential HAL-BHI combo a “HAL of a Frac-ing Deal," seeing several positives for HAL including strengthening its relatively weak position in artificial lift and production chemicals which are critical to enhancing HAL’s mature field strategy, enabling it to leverage its unparalleled U.S. pressure pumping logistics chain to enhance the efficiency of BHI’s operations, and providing the opportunity for significant cost savings which likely would total $600M-$750M or more.
- While antitrust concerns could force some divestitures, Gengaro does not believe it would prevent a deal from happening.
- Other potentially attractive M&A targets among oil services companies could include Dril-Quip (DRQ +0.7%), Frank’s International (FI +2.6%) and Oceaneering (OII -0.2%), Simmons & Co. says.
Aug. 18, 2014, 6:55 AM
Jan. 20, 2014, 10:14 PM
- GE earlier today said it agreed to acquire Cameron International's (CAM) reciprocating compression unit for $550M, in a deal GE sees as strengthening its recently formed downstream technology solutions unit.
- The development of shale fields, especially in North America, has increased demand for high-speed reciprocating compressors used in gas gathering, gas lift and injection, transmission and storage; CAM's unit had sales of ~$355M in 2012.
- CAM says it expects to post a loss of ~$100M on the sale, reflecting the write-off of goodwill.
May 7, 2013, 10:54 AM
Dresser-Rand (DRC +3.8%) is turning into a takeover target for potential buyers such as Siemens (SI), National Oilwell Varco (NOV) and Cameron (CAM), Bloomberg writes. GE’s decision to buy Lufkin this year at the highest multiple to profit on record signaled an appetite for takeovers in the oilfield equipment industry, and DRC could be next on the list as the number of takeout candidates in the space diminishes.| May 7, 2013, 10:54 AM | 1 Comment