SLB, who (with its subsidiary SLB Onesubsea) recently, entered into a Memorandum of Understanding (MOU) with C-Power to explore harnessing ocean wave energy as a more affordable, low-carbon power source for subsea energy applications, has provided an update on its planned acquisition of ChampionX.

In the update given by the company on July 2, 2024, both SLB and ChampionX received a second request for additional information from the United States Department of Justice (DoJ) as part of its evaluation of the acquisition.

SLB anticipates completing the transaction in the fourth quarter of 2024 or the first quarter of 2025, pending regulatory approvals and other standard closing conditions. ChampionX stockholders approved the acquisition during a special meeting held on June 18, 2024.

Earlier on 2 April 2024, the company said that it has entered into a definitive agreement with ChampionX Corporation for SLB to acquire ChampionX in an all-stock transaction, which has been unanimously approved by ChampionX’s board of directors. Under the agreement, ChampionX shareholders will receive 0.735 SLB shares for each ChampionX share, resulting in ChampionX shareholders owning approximately 9% of SLB’s common stock upon the deal’s closure.

The acquisition comes at a critical time for the oil and gas industry, as the production phase, which lasts the majority of an asset’s life cycle, is seeing increased demand for advanced technologies like AI and autonomous operations. SLB CEO Olivier Le Peuch emphasized that the combination of ChampionX’s leadership in production and SLB’s international reach and technology portfolio will bring significant value to both companies' customers and stakeholders. Le Peuch highlighted SLB’s commitment to meeting energy demands while promoting decarbonization, stating that the acquisition strengthens SLB’s focus on the growing production and recovery segment.

ChampionX CEO Soma Somasundaram expressed excitement about the acquisition, noting that it will enhance ChampionX’s ability to lead in the energy sector. He praised SLB’s global reach and technological prowess and emphasized the potential synergies that would create value for shareholders and employees alike.

SLB anticipates achieving $400 million in annual pretax synergies through revenue growth and cost savings within the first three years post-closing. The deal, subject to regulatory and shareholder approvals, is expected to close by the end of 2024. Additionally, SLB announced plans to return $7 billion to shareholders over the next two years, with $3 billion targeted for 2024 and $4 billion for 2025, reflecting confidence in the transaction’s value creation.