Britain's competition regulator, the Competition and Markets Authority (CMA), stated that SLB's proposed $8 billion acquisition of ChampionX could result in a substantial lessening of competition within the UK. This finding emerged from the CMA's initial review of the merger.
The watchdog's announcement indicates a significant regulatory concern that may require SLB and ChampionX to offer remedies to proceed with the deal in the UK. Such remedies could include the divestment of certain business units.
This development introduces uncertainty regarding the full scope and structure of the planned merger. The CMA's decision highlights the potential for market concentration issues arising from the combination of the two oilfield services companies.
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