The Competition Bureau of Canada has successfully negotiated a consent agreement with Schlumberger Limited regarding its proposed acquisition of ChampionX Corporation. This agreement aims to alleviate competition concerns identified during the Bureau's review of the transaction.

The Bureau's investigation revealed that the merger could significantly reduce competition in the supply of essential oilfield services and equipment in Canada. Specifically, it was found that the acquisition might hinder innovation and access to critical products such as polycrystalline diamond (PCD) cutters, PCD bearings, and quartz transducers, which are vital for constructing drill bits and providing directional drilling and well completion services.

To address these concerns, Schlumberger has committed to divesting US Synthetic, a subsidiary of ChampionX that manufactures PCD cutters and bearings. Additionally, Schlumberger will license intellectual property related to quartz transducers from Quartzdyne, another subsidiary of ChampionX. The Bureau is confident that these measures will effectively mitigate the anti-competitive effects anticipated from the merger.

The Bureau has acknowledged the cooperation of both parties throughout the review process, which facilitated the resolution of the competition issues. The consent agreement will have the same legal standing as a court order once it is registered with the Competition Tribunal.