Schlumberger ( NYSE: SLB ), Aker Solutions ( OTC:AKRTF ) and Subsea 7 ( OTCPK:SUBCY ) said on Tuesday they will form a joint venture combining their subsea oil and gas construction business, offering complementary geographic coverage, technology and engineering capabilities.
The combined business will have ~9K employees globally, according to Reuters, and the companies estimate synergy potential of more than $100M/ear in the medium term.
In addition to contributing its subsea business to the joint venture, Schlumberger ( SLB ) will issue common shares valued at $306.5M to Aker Solutions in a private placement.
Also, Subsea 7 ( OTCPK:SUBCY ) will pay $306.5M in cash to Aker Solutions ( OTC:AKRTF ), and the JV will issue a promissory note to Aker Solutions for $87.5M.
At closing of the JV, Schlumberger ( SLB ) will own 70%, with Aker Solutions ( OTC:AKRTF ) owning 20% and Subsea 7 ( OTCPK:SUBCY ) holding 10%.
Schlumberger ( SLB ) considers its "phenomenal" Q2 results, including Q/Q strongest revenue growth since 2010, "an upward inflection that will continue due to the global need for non-Russian oil and gas supply," Laura Starks writes in a bullish analysis posted on Seeking Alpha .
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Schlumberger, Aker Solutions, Subsea 7 to form subsea engineering JV