Schlumberger & Smith to Tie the Knot

abarrelfull wrote on 22 Feb 2010 08:43
Tags: international schlumberger services smith

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News of a big marriage in the oil services sector.

Schlumberger Ltd and Smith International, Inc. jointly announced today that their Boards of Directors have unanimously approved a definitive merger agreement in which the companies would combine in a stock-for-stock transaction.

As the knowledge side of the industry grows in importance, so the major players are growing in size.

Schlumberger is of course the biggest of the big boys:

Schlumberger is the world’s leading supplier of technology, integrated project management and information solutions to customers working in the oil and gas industry worldwide.

Whilst Smith, though not quite in the same league is hardly a minnow.

Smith International, Inc. is a leading supplier of premium products and services to the oil and gas exploration and production industry. The Company employs over 21,000 full-time personnel and operates in over 80 countries around the world.

Together they can create big synergies.

Smith’s drilling technologies, other products and expertise complement our own, while the geographical footprint of Schlumberger means we can extend our joint offerings worldwide.

By taking Smith's expertise and offering it to a greater number of customers, it will create new value generation. At least that's the theory. It doesn't always work like that.

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