The Norwegian competition authority has announced that it will conduct a more detailed analysis of Schlumberger's proposed acquisition of ChampionX due to potential risks to competition in the markets for production chemicals, permanent well monitoring, and directional drilling.

Both companies provide production chemicals and related services to oil and gas companies operating on the Norwegian continental shelf, and together they hold a significant market share. The authority's preliminary assessment indicates that the acquisition could reduce the number of suppliers available to customers, thereby limiting competitive bidding in procurement processes for production chemicals.

Additionally, there are vertical relationships between the two companies, as ChampionX supplies quartz transducers and diamond bearings that are utilized by Schlumberger and its competitors in their offerings for permanent well monitoring and directional drilling in Norway. The authority is concerned that the acquisition may also negatively impact competition in these related markets.

Schlumberger and ChampionX have proposed remedial measures during the initial phase of the review. However, the competition authority has determined that these measures are insufficient to mitigate the potential anti-competitive effects of the acquisition.

The authority's preliminary conclusion suggests that there are valid concerns regarding the acquisition's impact on competition across multiple markets. Moving forward, the competition authority will continue its evaluations to determine whether it is necessary to block the acquisition.

The authority received the notification of the acquisition on January 21, 2025, and initially had until February 25, 2025, to indicate whether intervention might be necessary. Following the companies' proposals for remedial measures, this deadline has been extended to March 11, 2025. The authority has communicated that the proposed measures are inadequate, and a formal notice was issued on February 25, 2025. The deadline for a reasoned proposal for a prohibition decision is set for May 5, 2025.