Oilfield services giant Schlumberger and Cameron revealed a definitive merger agreement in which the companies will combine in a stock and cash transaction.
The two companies said in a joint statement on Wednesday that the total transaction is valued at $14.8 billion.
Under the terms of the agreement, Cameron shareholders will receive 0.716 shares of Schlumberger common stock and a cash payment of $14.44 in exchange for each Cameron share.
Upon closing, Cameron shareholders will own approximately 10% of Schlumberger’s outstanding shares of common stock.
The transaction combines two complementary technology portfolios into a “pore-to-pipeline” products and services offering to the global oil and gas industry. On a pro forma basis, the combined company had 2014 revenues of $59 billion.
It is anticipated that the closing of the transaction will occur in the first quarter of 2016.
Goldman, Sachs & Co. is acting as financial advisor, and Baker Botts and Gibson Dunn & Crutcher are serving as legal counsel, to Schlumberger. Credit Suisse is acting as financial advisor and Cravath, Swaine & Moore is serving as legal counsel to Cameron.