Schlumberger, Subsea 7 and Aker Solutions to form subsea engineering firm

U.S. engineering firm Schlumberger (SLB.N) and Norway’s Aker Solutions (AKSOA.OL) plan to merge their subsea oil and gas construction business and to bring in a third rival, Oslo-listed Subsea 7 (SUBC.OL), as a partner, the firms said on Tuesday.

Aker Solutions will receive $700 million in cash and Schlumberger stock as part of the deal, and expects to book a profit of around $1 billion at the time of closing, the Norwegian company said.

The deal will leave Schlumberger with a 70% stake in the planned joint venture while Aker Solutions gets 20% and Subsea 7 10%, the companies said in a joint statement.

The combined business will have approximately 9,000 employees globally, and the estimated synergy potential is more than $100 million per year in the medium term, they added.

The transaction is expected to close in the second half of 2023.