Cameron to Acquire Natco Group in $780 Million All-Stock DealOil and gas services company Cameron International (CAM - Get Report) said Monday that it will acquire fellow oil services outfit Natco Group (NTG) in a $780 million all-stock deal.
Pursuant to the deal, Natco shareholders will receive 1.185 shares of Cameron common stock per share of Natco stock. Natco has about 20.3 million shares outstanding, which means that current Natco shareholders will gain approximately 10% ownership of Cameron's outstanding shares.
The board of directors for both companies have approved the acquisition, which is anticipated to close in the third quarter of this year.
Natco shares rose $4.62, or +15%, in morning trading Tuesday, while Cameron shares fell $1.76, or -5.4%.Shares of CAM are off of 52-week high levels of $58. The stock has near-term technical support in the $25-$27 price area. If the shares can rebound from today's early drop, we see overhead resistance around the $36-$38 price levels. We do not currently rate this non-dividend paying stock, but we do follow the stock and the oil services space very closely. Neither of the stocks mentioned in this article currently pay a dividend.