Schlumberger in Talks to Buy Smith: Report - TheStreet

Updated from 12:32 a.m. EST

HOUSTON (

TheStreet

) --

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.

Follow TheStreet.com on

Twitter

and become a fan on

Facebook.