SLB, ChampionX merger may extend into 2025 on DOJ request

(WO) — SLB announced that, as expected, it and ChampionX have each received a request for additional information (second request) from the United States Department of Justice (DoJ) in connection with the DoJ’s review of SLB’s planned acquisition of ChampionX.

SLB currently expects the transaction to close in the fourth quarter of 2024 or the first quarter of 2025, pending regulatory approvals and other customary closing conditions. The transaction received the approval of the ChampionX stockholders at a special meeting held on June 18, 2024.

SLB announced its acquisition of ChampionX in April 2024. Under the agreement, ChampionX shareholders will receive 0.735 shares of SLB common stock in exchange for each ChampionX share. At the closing of the transaction, ChampionX shareholders will own approximately 9% of SLB’s outstanding shares of common stock.

Additionally, SLB expects to realize annual pretax synergies of approximately $400 million within the first three years post-closing through revenue growth and cost savings.

In an online statement, SLB said the acquisition “comes at an important time in the industry. The production phase of oil and gas operations typically comprises the majority of an asset’s life cycle from completion through decommissioning. This places a premium on service providers’ ability to help customers address challenges across the entirety of their production system. At the same time, there is growing demand to scale emerging technologies such as AI and autonomous operations across global operations.