SLB to acquire ChampionX in an all-stock transaction

SLB and ChampionX announced a definitive agreement for SLB to purchase ChampionX in an all-stock transaction. The ChampionX Board of Directors unanimously approved the agreement. The transaction’s closing is set to occur before the end of 2024.

According to the agreement, ChampionX shareholders will receive 0.735 shares of SLB common stock in exchange for each ChampionX share. When the transaction closes, ChampionX shareholders will own approximately 9% of SLB’s outstanding shares of common stock.

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

“Our customers are seeking to maximize their assets while improving efficiency in the production and reservoir recovery phase of their operations,” said Olivier Le Peuch, CEO of SLB. “This presents a significant opportunity for service providers who can partner with customers throughout the entire production lifecycle, offering integrated solutions and delivering differentiated value.

“Our core strategy remains centered on meeting growing energy demand while accelerating decarbonization and emissions reduction through innovation, scale and digitalization in our core oil and gas business. This acquisition will expand SLB’s presence in the less cyclical and growing production and recovery space that is closely aligned with our returns-focused, capital-light strategy.“