The Saudi General Authority for Competition (GAC) announced its conditional approval for the acquisition of ChampionX Corporation by Schlumberger Limited (SLB) on April 24, 2025. This marks the first time the GAC has imposed a structural remedy in conjunction with behavioral commitments for a merger approval.
The structural remedy requires the divestiture of US Synthetic Corporation, a US subsidiary of ChampionX specializing in synthetic polycrystalline diamond cutter inserts. This divestiture, which ChampionX had previously announced an agreement to sell to LongRange Capital, is a condition for the overall transaction's approval and must occur after the main merger closes.
Additionally, the GAC imposed behavioral commitments to ensure continuity of supply and prevent market foreclosure in Saudi Arabia's downstream oil and gas sector. ChampionX is compelled to continue supplying Quartzdyne products and services to existing customers for four years post-transaction, with pricing anchored at 2024 levels, subject to annual industry index adjustments. These measures aim to safeguard competitive terms and accommodate reasonable increases in demand for Saudi-based operators.
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