IP/10/1007
Brussels, 26 July 2010
Mergers: Commission clears Schlumberger's proposed acquisition of Smith
The European Commission has approved under the EU Merger Regulation the proposed acquisition of Smith International Inc. by Schlumberger Limited. Both companies are US-based oilfield services providers. After examining the operation, the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.
Schlumberger supplies technology, project management and information solutions to the oil and gas industry. Smith provides equipment, products and services to support the exploration, development, and production of oil and gas. Through the proposed operation, Schlumberger would acquire the sole control of Smith by purchase of its shares.
The transaction relates to the markets for (i) directional drilling services, (ii) the supply of drill bits and (iii) the supply of completion products and services.
The Commission's investigation found that the operation would not give rise to any significant competition concerns, since the horizontal overlaps on all markets are limited and the parties would continue to face strong, effective competitors.
The transaction was notified to the Commission on 18 June 2010. More information on the case will be available at:
http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=2_M_5839
