On March 27, 2025, the UK Competition and Markets Authority released a report of findings from its phase 1 investigation into the planned acquisition of ChampionX Corporation by Schlumberger Limited (“SLB”) for $7.8 billion, which the companies announced on April 2, 2024. Both companies are global suppliers of oilfield services, equipment and technologies for Exploration and Production (“E&P”) companies and other oilfield services providers around the world, and each company has significant operations that supply E&P companies in the UK North Sea. According to the CMA’s report, there was a realistic prospect that the merger could substantially lessen competition in the United Kingdom, particularly in the supply of (i) production chemical technologies to E&P operators in the UK North Sea and in the supply of (ii) directional drilling services using rotary steerable systems and (iii) permanent downhole gauges.
As a result the CMA’s findings, SLB and ChampionX will have until April 3, 2025 to offer undertakings that will remedy the identified competition concerns. If no undertakings are offered by the deadline or the offerings are insufficient to remedy the concerns, the CMA will launch an in-depth phase 2 investigation into the merger pursuant to sections 33(1) and 34ZA(2) of the Enterprise Act 2002.
CMA Decision Summary | CMA case – Schlumberger/ChampionX merger inquiry