Schlumberger To Acquire ChampionX In All-Stock Transaction; Will Increase Total Return To Shareholders To Target Of $3B In 2024
Portfolio Pulse from Benzinga Newsdesk
Schlumberger (SLB) announced it will acquire ChampionX (CHX) in an all-stock transaction. The deal is expected to generate pre-tax synergies of approximately $400 million within three years. Following the acquisition, SLB aims to increase its total returns to shareholders to $3 billion in 2024 and sets a target of $4 billion for 2025.
April 02, 2024 | 11:32 am
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POSITIVE IMPACT
ChampionX is being acquired by Schlumberger in an all-stock transaction, which is expected to bring about significant synergies.
The acquisition by a larger entity like Schlumberger could be seen as a positive development for CHX shareholders, especially considering the expected synergies. This could lead to a favorable reaction in CHX's stock price in the short term.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Schlumberger's acquisition of ChampionX is expected to generate significant pre-tax synergies and increase shareholder returns to $3 billion in 2024 and $4 billion in 2025.
The acquisition is likely to be viewed positively by investors due to the expected synergies and the clear plan to increase shareholder returns. This strategic move could enhance SLB's market position and financial strength, leading to potential stock price appreciation.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90