The energy sector saw a significant development this week as the world’s top oilfield services provider, SLB, announced a definitive agreement to acquire smaller competitor ChampionX Corporation in a deal valued at $7.75 billion. The agreement stipulates that ChampionX shareholders will receive 0.735 shares of SLB common stock for each ChampionX share, with the transaction expected to close before the end of 2024.

Following the announcement, ChampionX’s shares surged by 10% in pre-market trade on the NASDAQ, reflecting the market’s positive response to the deal. SLB’s chief executive officer, Olivier Le Peuch, highlighted the demand for maximizing assets and improving efficiency in production and reservoir recovery as key factors driving the acquisition.

This acquisition comes at a time when the energy sector is undergoing significant changes, with a focus on meeting growing energy demand while accelerating decarbonization and emissions reduction through innovation and scale. The deal is subject to ChampionX shareholders’ approval, regulatory approvals, and other customary closing conditions.