Schlumberger in Talks to Buy Smith: Report
Updated from 12:32 a.m. EST
HOUSTON (
) --
Schlumberger
(SLB) - Get Report
is in advanced talks to acquire fellow oil-services company
Smith International
(SII)
, a report says.
The deal could be announced in coming days, the
Wall Street Journal
reports, citing people familiar with the talks. A merger of Schlumberger and Smith would create a company with revenue double that of its nearest rival
Halliburton
(HAL) - Get Report
, the
Journal
notes.
The
Journal
estimates the transaction would go for about $9 billion based on Smith's current market cap of around $7.5 billion and assuming a typical deal premium of about 20%.
The deal hasn't yet been finalized and could still fall apart, the
Journal
reports, adding a merger would likely face antitrust scrutiny in the U.S. and overseas.
Schlumberger and Smith came close to finalizing a deal at different times last year, only to have it fall apart over price, said people familiar with the matter, the
Journal
reports.
Smith, based in Houston, is one of the biggest producers of oil field drill bits, among other equipment.
Schlumberger didn't return requests for comment from the newspaper, while a Smith spokesman declined to comment.
Smith shares closed Thursday at $33.35, while Schlumberger finished at $65.81.
-- Written by Joseph Woelfel in New York.
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