The Competition and Markets Authority (CMA) is currently assessing SLB's proposed undertakings aimed at resolving competition issues identified during its Phase 1 investigation of SLB's acquisition of ChampionX. Both companies are significant suppliers of oilfield services and technologies, with substantial operations in the UK, particularly in the North Sea.

The CMA's concerns stem from the potential for the merger to solidify the companies' dominant positions in concentrated markets, which could lead to increased costs, fewer choices, and diminished innovation in the oil and gas industry. The proposed remedies include the sale of SLB's UK production chemical technologies business and ChampionX's global US Synthetic business, both to CMA-approved buyers. Additionally, SLB has offered a license for relevant intellectual property to support the development of alternative suppliers in the market.

With a provisional finding that these undertakings could mitigate its concerns, the CMA has a 40-day period to further evaluate the proposals, including gathering feedback from third parties. If the CMA is satisfied with the proposals, it will clear the merger, contingent upon the final acceptance of the undertakings.

Senior Director for Mergers at the CMA, Sorcha O’Carroll, emphasized the importance of effective competition in driving innovation and maintaining competitive prices in the oil and gas sector. The CMA is committed to engaging with the companies on their proposals and considering any feedback received before making a final decision.