The Competition Bureau has reached a consent agreement with Schlumberger Limited (Schlumberger) to address competition concerns related to its proposed acquisition of ChampionX Corporation (ChampionX). The two companies provide oilfield services in Canada.
A Bureau review concluded that the proposed transaction would likely result in a substantial lessening of competition in the supply of critical oilfield services and equipment in Canada.
Specifically, the review determined that the transaction is likely to lead to reduced innovation and access for three products: polycrystalline diamond (PCD) cutters; PCD bearings; and quartz transducers. These products are used as inputs in the construction of drill bits for oil and gas wells and in the provision of directional drilling services and well completion services.
To resolve the Bureau's concerns, Schlumberger has agreed to sell US Synthetic, a subsidiary of ChampionX and manufacturer of PCD cutters and bearings, and to license intellectual property relating to quartz transducers owned by Quartzdyne, another business of ChampionX. The Bureau is satisfied that these actions address the competition concerns arising from the proposed transaction.
The Bureau acknowledges the parties' cooperation throughout the review to address the Bureau's concerns.
