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Schlumberger-Cameron Merger on Track: EU Gives Approval

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World's largest oilfield services company Schlumberger LimitedSLB and leading flow equipment products provider Cameron International Corp.CAM jointly announced that they have received unconditional clearance from the European Commission (EU) for their $14.8 billion merger.

The panel does not expect the proposed merger to raise any concerns in terms of competition given the diverse nature of activities in which the companies are involved. This has been the driving force behind the unconditional approval for the expected combination following a Phase 1 review.

The proposed acquisition, first announced in August 2015, was approved by the U.S. Department Of Justice (DOJ) without any clauses in mid-November. Following this, shareholders of Cameron voted in favor of the merger on Dec 17, 2015. The deal also obtained antitrust clearances in Canada, Brazil, Russia and Mexico.

Following EU's consent, the only regulatory approval awaited by the companies to close the deal is in China -- from the Ministry of Commerce. Authorities in China have begun their Phase 1 review process on February 4, 2016.

Houston-based Schlumberger provides technology, project management and information services to the global oil and gas industry.

Cameron is a leading manufacturer of pressure control equipment used in onshore, offshore, and subsea applications for oil and gas drilling, production and transmission.

The merger is anticipated to close in the first quarter of 2016, subject to the effective fulfillment of all customary conditions of the agreement.

Schlumberger carries a Zacks Rank #5 (Strong Sell), implying that the stock will underperform the broader U.S. equity market over the next one to three months. Cameron, on the other hand, carries a Zacks Rank #3 (Hold), implying that the stock will perform in line with the broader U.S. equity market over the next one to three months.

Some better-ranked players in the oilfield services sector are McDermott International Inc. MDR and Power Secure International, Inc. POWR . Both the stocks hold a Zacks Rank #2 (Buy).

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CAMERON INTL (CAM): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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