Superior Energy Services Inc. (NYSE: SPN) announced on Monday that it will buy Complete Production Services Inc. (NYSE: CPX) for about $2.7 billion.
The purchase will give Superior Energy a wider reach into the oilfield services sector, and will allow the company to offer more services like hydraulic fracturing.
Complete was largely focused on North American oil fields like the Marcellus, Bakken and Fayetteville shale formations.
Bloomberg Businessweek reports that the buyout “equates to 0.945 common shares of Superior and $7 in cash for each share that Complete stockholders own.”
Superior shareholders will own 52 percent of the company’s outstanding stock and Complete stockholders will own 48 percent.
“The combination of Superior and Complete creates a top-tier diversified oilfield services company with the products, technologies and talented people that are critical to helping our customers create value, particularly in unconventional fields in North America,” Superior President and CEO David Dunlap said in a statement on Monday.
The deal has been approved by both companies but is waiting on approval from the two companies’ shareholders.
Superior and Complete are not the only recent mergers in the oil and energy sectors.
Units of Broadwalk Pipeline Partners and Southwestern Energy Company (NYSE: SWN) have teamed up to build a $90 million natural gas gathering system in the Marcellus Shale.
Sinopec, a unit of China’s Petrochemical Corp., signed a deal to buy Canadian company, Daylight Energy Ltd. (TO: DAY) for $2.1 billion in cash; another effort towards China securing energy to support its growing population and economy.
Declining crude prices have driven down shares of some energy companies making them an ideal target for procurement by other energy companies.
That’s all for now,