ChampionX (NASDAQ:CHX) stock is a hot topic among traders on Tuesday after the oil and gas technology company announced that it is being acquired by SLB (NYSE:SLB).
A press release reveals that investors in ChampionX will receive 0.735 shares of SLB stock for each share of CHX stock they own. Following this, CHX investors will hold a 9% stake in SLB.
The merger also includes annual synergies of $400 million within the first three years of its completion. In addition, SLB has pledged to return $7 billion to shareholders over the next couple of years.
Olivier Le Peuch, CEO of SLB, said this about the acquisition agreement with ChampionX:
“Our core strategy remains centered on meeting growing energy demand while accelerating decarbonization and emissions reduction through innovation, scale and digitalization in our core oil and gas business. This acquisition will expand SLB’s presence in the less cyclical and growing production and recovery space that is closely aligned with our returns-focused, capital-light strategy.”
The deal requires approval from investors in CHX and regulators. This has the two companies expecting it to close before the end of 2024.
CHX Stock Movement on Tuesday
News of the deal with SLB has shares of CHX stock seeing heavy trading on Tuesday. That has more than 7.5 million shares changing hands as of this writing. This is already well above its daily average trading volume of about 1.45 million shares.
CHX stock is up 8.8% as of Tuesday morning.
Investors seeking out more of the most recent stock market stories are in luck!
We have all of the hottest stock market news worth reading about on Tuesday! That includes everything happening with shares of VivoPower (NASDAQ:VVPR) stock, details on a Google lawsuit and more. All of this info is available below!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
