M&A - ChampionX Corp

Form Type: 10-Q

Filing Date: 2025-04-30

Corporate Action: Merger

Type: Update

Accession Number: 000172308925000075

Filing Summary: This Form 10-Q is a quarterly report for ChampionX Corporation for the period ended March 31, 2025. It includes unaudited financial statements, a management discussion and analysis section, and other critical information about the company's operations. Key highlights include ongoing preparations and considerations related to a merger agreement that may significantly influence the company’s operations and stock price. The potential merger presents uncertainties, including regulatory approval challenges and impact on personnel and operational focus. The company has discussed financial results, reflecting trends influenced by commodity prices and economic conditions. The document also details risk factors related to market needs, costs, and competition, emphasizing the importance of strategic planning amidst potential merger developments.

Form Type: 425

Filing Date: 2025-04-30

Corporate Action: Acquisition

Type: Update

Accession Number: 000119312525107133

Filing Summary: SLB announced progress with the Norwegian Competition Authority (NCA) regarding the ChampionX acquisition, nearing the conclusion of the NCA's Phase 2 review. The resolution does not require remedies for ChampionX's production chemistry business in Norway. Notably, the proposed resolution includes the divestiture of ChampionX's U.S. Synthetic business, previously approved by U.S. regulators, along with commercial remedies for the Quartzdyne business involving long-term supply agreements. SLB expresses commitment to finalize the acquisition, anticipated to close in Q2 or early Q3 2025, while addressing potential risks and uncertainties related to the transaction.

Form Type: 425

Filing Date: 2025-04-28

Corporate Action: Acquisition

Type: Update

Accession Number: 000119312525099257

Filing Summary: On April 25, 2025, Schlumberger N.V. announced during its earnings call that they have filed materials with the SEC in connection with their proposed acquisition of ChampionX Corporation. The document indicates that the United Kingdom Competition and Markets Authority is reviewing their proposed actions related to this merger. Schlumberger expressed optimism about closing the acquisition by the second quarter or early third quarter of 2025. In the earnings call, Schlumberger reported a 3% year-on-year decrease in revenue attributed to a decline in international markets, particularly in Mexico, Saudi Arabia, and Russia. However, they noted a growth in North America driven by strong performance in digital and subsea production systems despite challenges in drilling revenue due to rig efficiency gains. Schlumberger also discussed their focus on maintaining margins and cash flows in light of economic uncertainties and their ongoing cost optimization efforts. They reiterated their commitment to returning $4 billion to shareholders in 2025, which is supported by their cash flow generation and ongoing strategies to enhance profitability, including the anticipated benefits from the ChampionX acquisition.

Form Type: 425

Filing Date: 2025-04-25

Corporate Action: Acquisition

Type: New

Accession Number: 000119312525095032

Filing Summary: On April 25, 2025, SLB (Schlumberger Limited) reported its financial results for the first quarter of 2025, with revenue of $8.49 billion, a 3% year-over-year decline. Key financial metrics included a 22% drop in GAAP EPS to $0.58 and a net income of $797 million, which was 25% lower than the previous year. The report indicated a commitment to return at least $4 billion to shareholders through dividends and share buybacks in 2025. SLB is progressing towards acquiring ChampionX, having received consideration for the acquisition from the UK Competition and Markets Authority as part of a Phase 1 review. The report expressed optimism despite current market challenges, highlighting a focus on cash flow generation, margin protection, and ongoing investment in digital capabilities. Notable achievements included increased revenue in the Production Systems division, supporting SLB's strategic objectives of digital integration and operational efficiency. Moreover, SLB discussed continued collaboration with regulators regarding the acquisition of ChampionX, indicating an expected closure in the second quarter or early third quarter of 2025. SLB's detailed quarterly results highlighted both successful cost management and strategic investments amidst fluctuating market conditions.

Form Type: 425

Filing Date: 2025-04-25

Corporate Action: Acquisition

Type: New

Accession Number: 000119312525096736

Filing Summary: On April 25, 2025, ChampionX Corp is involved in an acquisition proposed by SLB (formerly known as Schlumberger N.V.). SLB's first-quarter earnings conference call highlighted their financial performance amidst a challenging macroeconomic backdrop, characterized by a decrease in overall revenue by 3% year-on-year. While international revenues faced a 5% decline due to lower activity in Mexico, Saudi Arabia, and Russia, North America saw an 8% increase, primarily driven by strong sales of digital and subsea production systems, alongside a robust data center infrastructure business. Amidst this, SLB emphasized the ongoing integration processes related to the ChampionX transaction, intending to finalize this by early third quarter 2025. The talks with regulators, including the UK Competition and Markets Authority, are progressing positively, with officials evaluating proposed actions to relieve competition concerns. This acquisition is seen as a strategic move to enhance SLB's offerings and capabilities.

Form Type: 425

Filing Date: 2025-04-10

Corporate Action: Acquisition

Type: Update

Accession Number: 000119312525077972

Filing Summary: On April 10, 2025, Schlumberger N.V. (SLB) provided an update regarding the planned acquisition of ChampionX Corporation. The United Kingdom Competition and Markets Authority (CMA) has agreed to consider SLB's proposed actions to address concerns around the acquisition as part of the CMA's Phase 1 review. Proposed actions include the divestiture of the ChampionX U.S. Synthetic business and SLB's production chemicals business in the UK, along with commercial remedies related to the Quartzdyne business. SLB aims to collaborate with regulators for an anticipated closing in Q2 or early Q3. The definitive agreement for SLB to acquire ChampionX was announced in April 2024, aiming for synergies and enhanced customer value through combined expertise and digital integration.

Form Type: 425

Filing Date: 2025-03-27

Corporate Action: Acquisition

Type: Update

Accession Number: 000119312525065534

Filing Summary: On March 27, 2025, SLB announced that the United Kingdom Competition and Markets Authority (CMA) has not unconditionally cleared its planned acquisition of ChampionX during the Phase 1 review period. SLB emphasized its commitment to collaborate with the CMA to resolve any concerns and expressed confidence that the transaction will ultimately be approved for closing. The expected closing timeframe has been adjusted to the second or early third quarter of 2025. The acquisition, initially announced in April 2024, aims to leverage the combined expertise and resources of both companies to enhance value creation for customers through improved equipment life and production optimization.

Form Type: 425

Filing Date: 2025-02-26

Corporate Action: Acquisition

Type: New

Accession Number: 000119312525035322

Filing Summary: On February 25, 2025, ChampionX Corporation entered into an Equity Purchase Agreement with USS HardTech, LLC and Schlumberger Limited, facilitating the divestiture of its subsidiary US Synthetic Corporation as part of a proposed acquisition by Schlumberger. The agreement outlines a cash consideration of approximately $300 million, subject to adjustments, for the USS Divestiture. The completion of the transaction is contingent upon standard closing conditions such as legal clearances and the closing of the overarching Merger Agreement previously established on April 2, 2024. The Purchase Agreement allows for termination under specific conditions and highlights potential fees that ChampionX may incur if terminated under defined circumstances. ChampionX also issued a press release on the same day announcing the signing of this Purchase Agreement, which is intended to provide insight for shareholders regarding the terms of the transaction, but is not a definitive guide on the companies involved.

Form Type: 425

Filing Date: 2025-02-25

Corporate Action: Acquisition

Type: New

Accession Number: 000119312525035169

Filing Summary: On February 25, 2025, SLB announced an update regarding its planned acquisition of ChampionX Corporation. All applicable waiting periods under the U.S. Hart-Scott-Rodino Antitrust Improvements Act have expired, permitting SLB to close the acquisition in the United States. SLB and ChampionX have reached a definitive agreement to sell ChampionX's equity interests in US Synthetic Corporation to a third-party buyer, while SLB retains its MegaDiamond business. The acquisition remains subject to antitrust review in various jurisdictions, including ongoing assessments in Norway. SLB anticipates the transaction closing by the end of the first quarter or early in the second quarter of 2025. The communication includes forward-looking statements on the transaction's benefits and timing, reflecting the companies' operational outlooks and associated risks from external economic factors.

Form Type: 10-K

Filing Date: 2025-02-05

Corporate Action: Merger

Type: Update

Accession Number: 000172308925000025

Filing Summary: ChampionX Corp is in the process of merging with Schlumberger Limited. This merger is intended to combine strengths in research and innovation, enhance product lines, and expand into new markets. The terms of the merger agreement include specific provisions regarding asset transfers, management structures, and operational integration. The merger aims to create a larger entity capable of providing more comprehensive services within the oilfield services sector. Financial projections post-merger indicate a significant increase in market share and potential revenue growth. The anticipated date of merger completion is set for 2024, and new operational strategies are being developed to ensure a smooth transition and integration.

Form Type: 425

Filing Date: 2025-01-21

Corporate Action: Acquisition

Type: Update

Accession Number: 000119312525008534

Filing Summary: Slumberger NV's earnings call discusses the proposed acquisition of ChampionX Corporation, including various details regarding financial performance and market outlook. The document outlines Slumberger's strong finish to 2024, highlighting $36.3 billion in revenue, a 10% year-over-year increase. It notes that the acquisition helps enhance their operational capabilities in production and recovery sectors. The company expects to close the ChampionX transaction before the end of Q1 2025, having received necessary regulatory approvals. The detailed financial report includes increased dividend returns and accelerated stock repurchases, demonstrating confidence in future cash flows and strategic positioning in the market.

Form Type: 425

Filing Date: 2025-01-17

Corporate Action: Acquisition

Type: New

Accession Number: 000119312525008048

Filing Summary: On January 17, 2025, Schlumberger N.V. announced its fourth-quarter and full-year 2024 earnings, highlighting a robust financial performance despite market challenges. Revenue for the fourth quarter reached $9.28 billion, an increase of 1% sequentially and 3% year-on-year. The report indicated a decrease in GAAP EPS to $0.77, down 7% sequentially. Notably, Schlumberger's strategy included a significant acquisition of the Aker subsea business, contributing to a fourth-quarter revenue of $1.93 billion from this segment. The earnings report emphasized increased dividends and the initiation of $2.3 billion in accelerated share repurchases. Key achievements included a 3.6% increase in quarterly cash dividends and robust cash flows reaching $6.60 billion for the full year. The company underscored its focus on digital innovation and its strategic acquisition of ChampionX, aimed at bolstering production capabilities. Schlumberger reported strong international growth in revenue, specifically in the Middle East & Asia, which rose 18% year-over-year. The document indicates that Schlumberger's consistent performance and strategic maneuvers optimize its positioning in the evolving market landscape.

Form Type: 425

Filing Date: 2025-01-17

Corporate Action: Acquisition

Type: New

Accession Number: 000119312525008381

Filing Summary: On January 17, 2025, Schlumberger N.V. filed an announcement in conjunction with its proposed acquisition of ChampionX Corporation. This filing elaborates on Schlumberger's strong financial performance in the fourth quarter and full year of 2024, highlighting robust revenue growth driven by various segments including their recent Aker Subsea acquisition. The company's adjusted EBITDA margin reached 25%, underscoring efficient operations. The announcement emphasizes ongoing engagements with regulatory authorities regarding the ChampionX acquisition, which has already received CIFIUS clearance. Schlumberger's strategy includes leveraging the strengths of both organizations to enhance shareholder value and expand market opportunities. Throughout the call, executives conveyed confidence in the company's diversified portfolio, shutting light on growth in digital services and low-carbon markets as essential contributors to future success. The anticipated completion of the ChampionX acquisition aims to coincide with the growing demands in the energy sector, allowing for enhanced services across Schlumberger’s operations. Overall, the document indicates a commitment to returning substantial value to shareholders and continues to underscore the strategic rationale for the acquisition of ChampionX.

Form Type: 8-K

Filing Date: 2024-12-27

Corporate Action: Merger

Type: Update

Accession Number: 000119312524285362

Filing Summary: On April 2, 2024, ChampionX Corporation entered into a Merger Agreement with Schlumberger Limited and its subsidiaries, which will result in ChampionX being merged and surviving as an indirect wholly owned subsidiary of Schlumberger. On December 23, 2024, to address potential tax implications under Sections 280G and 4999 of the Internal Revenue Code due to the Merger, ChampionX entered into a Section 280G mitigation agreement with its Chief Financial Officer, Mr. Kenneth Fisher. This agreement modifies certain equity awards, allowing for the early settlement of 82,502 restricted stock units with the issuance of restricted common stock, while ensuring that vesting schedules remain intact. Additionally, the agreement accelerates the vesting of 43,795 performance shares expected to be earned based on performance as of December 31, 2024, which will also result in stock issuance net of withholding taxes. These changes are important in the context of ensuring compliance with tax regulations surrounding the merger transaction with Schlumberger.