(MENAFN) Oil field services company Schlumberger Ltd. agreed to buy Cameron International Corp, in a deal valued at USD14.8 billion in order to cut costs amid slow drilling activity.
The U.S. based Cameron provides pressure control, processing and compression systems as well as project management and aftermarket services for the oil and gas industries, while Schlumberger surveys sites to drilling and completing wells.
The purchase will help Schlumberger restructure its supply chains and improve its manufacturing procedures, in addition to the earlier mentioned lowering operating costs.
Schlumberger has cut 20,000 jobs this year and decreased its capital budget to maintain margins, and so the firm expects the deal to grow earnings by the end of the first year after closing, which is projected in the first quarter of 2016.
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