Oil service giant Schlumberger buys Cameron for $14.8bn

Schlumberger, the world's leading oilfield services company, said Wednesday it is acquiring equipment maker Cameron in a deal valued at $14.8 billion (13 billion euros).

Franco-American Schlumberger said the combined group would offer oilfield services ranging from drilling to processing activities, and raise $900 million through synergies in its first two years.

The move follows the announcement last November of a planned hookup between sector heavyweights Halliburton and Baker Hughes, as companies in the sector seek to offset falling oil prices through increased efficiencies.

"With oil prices now at lower levels, oilfield services companies that deliver innovative technology and greater integration while improving efficiency, which our customers increasingly demand, will outperform the market," Schlumberger chairman Paal Kibsgaard said in a statement.

"We believe that the next industry technical breakthrough will be achieved through integration of Schlumberger?s reservoir and well technologies with Cameron's leadership in surface, drilling, processing and flow control technologies," he said.

Under the proposed deal, Cameron investors will receive $14.44 in cash and 0.716 of Schlumberger stock for each Cameron share they own.

At the close of trade Tuesday, Schlumberger stocks were worth $72.57 per share, while Cameron's were at $42.45.

In 2013 the two groups combined their sub-marine activities in the joint venture OneSubsea, 40 percent owned by Schlumberger and 60 percent by Cameron.