Top Stories
Schlumberger, Subsea 7 and Aker Solutions to form subsea engineering firm
Global Banking & Finance Review®
Company
OSLO (Reuters) – U.S. engineering firm Schlumberger and Norway’s Aker Solutions plan to merge their subsea oil and gas construction
OSLO (Reuters) – U.S. engineering firm Schlumberger and Norway’s Aker Solutions plan to merge their subsea oil and gas construction business and to bring in a third rival, Oslo-listed Subsea 7, as a partner, the firms said on Tuesday.
Aker Solutions will receive $700 million in cash and Schlumberger stock as part of the deal, and expects to book a profit of around $1 billion at the time of closing, the Norwegian company said.
The deal will leave Schlumberger with a 70% stake in the planned joint venture while Aker Solutions gets 20% and Subsea 7 10%, the companies said in a joint statement.
The combined business will have approximately 9,000 employees globally, and the estimated synergy potential is more than $100 million per year in the medium term, they added.
The transaction is expected to close in the second half of 2023.
(Reporting by Terje Solsvik, editing by Stine Jacobsen)
A joint venture is a business arrangement where two or more parties agree to pool their resources for a specific task or project, sharing profits, losses, and control.
Subsea engineering involves the design, construction, and maintenance of structures and systems located underwater, primarily for the oil and gas industry.
A stake in a company refers to the ownership interest held by an individual or entity, typically represented by shares of stock.
Synergy potential refers to the expected benefits that arise when two or more companies combine their resources, leading to improved efficiency and increased profits.
Cash management is the process of collecting, managing, and investing cash in a way that maximizes liquidity and minimizes risk for a business.
Explore more articles in the Top Stories category
