Latham Secures Global Clearance for SLB’s Acquisition of ChampionX

Latham & Watkins has secured global merger control and FDI clearances across 12 jurisdictions, including a precedent-setting Phase 1 clearance with remedies before the UK Competition Markets Authority (CMA) on behalf of SLB, formerly known as Schlumberger, for its acquisition of ChampionX, a leading oilfield service supplier. The transaction, valued at US$7.8 billion, has closed 15 months after its initiation, following rigorous regulatory reviews and approvals across multiple jurisdictions.

The case establishes a new benchmark in the realm of global merger enforcement due to the acceptance of innovative remedies by the CMA. To ensure a continuation of competitive dynamics in the market, the remedies included a carve-out of SLB’s UK production chemical technologies business, the sale of the target’s business US Synthetic Corporation active in the supply of drilling technology, and the licensing of certain intellectual property for a decade along with implementing behavioral commitments such as five-year supply agreements, dispute resolution mechanisms, and transitional services.

This case highlights Latham’s expertise in navigating global complexities while crafting creative solutions that satisfy stringent antitrust requirements. The successful clearance exemplifies Latham’s unrivalled global platform, showcasing seamless collaboration among teams in the UK, US, and Europe, while effectively managing strategy and coordinating with leading local firms.

The case included merger control filings in the UK, US, Australia, Angola, Brazil, Canada, Colombia, Mexico, New Zealand, Norway, and Saudi Arabia, and an FDI filing in the UK.

The Latham team was led by partners Jonathan Parker and Greg Bonne, in London, Carles Esteva Mosso and Tomas Nilsson, in Brussels, and Jason Cruise in Washington, D.C., with counsel, Tara Tavernia in Washington, D.C. and Philipp Studt in Brussels, and associates James Mansour, Nootan Vegad, and Josephine Levy in London, with assistance from Meera Manoj, and associates Jean-Baptiste Douchy, Anne-Claire Thery, Mario Barka, Stergos Chatzidiakos, Maria Zarro, and Olafur Klein in Brussels, with assistance from Rafal Sowula, Ilaria Federici, and Lila Penas.