Schlumberger’s acquisition of ChampionX approved with remedies

The Norwegian Competition Authority has approved Schlumberger’s acquisition of ChampionX, subject to certain conditions. The parties have committed to several remedies to ensure continued effective competition in the markets for permanent well monitoring and directional drilling in Norway.

The Norwegian Competition Authority received notification on January 21, 2025, that Schlumberger intends to acquire 100 percent of the shares in ChampionX. ChampionX supplies quartz transducers and diamond bearings, which are used by Schlumberger and its competitors as inputs in the markets for permanent well monitoring and directional drilling in Norway.

– The acquisition would significantly impede effective competition in the markets for permanent well monitoring and directional drilling in Norway due to input foreclosure of quartz transducers. Additionally, the acquisition would significantly impede effective competition in the market for directional drilling in Norway due to input foreclosure of diamond bearings. In response to the Norwegian Competition Authority’s concerns, the parties have now proposed a series of remedies, says Hanne Lilja Falkanger, Deputy Director of the Department for Construction, Industry, and Energy.

The remedies include, among other things, that the parties commit to divesting US Synthetic to LongRange Capital or another suitable and independent buyer. Furthermore, the parties commit to entering into long-term supply agreements with certain customers to ensure access to products and services from ChampionX’s Quartzdyne business or to offer products and services to other customers on non-discriminatory terms. The supply obligation applies for five years. The parties also commit to entering into a global license agreement to facilitate entry of a new supplier of quartz transducers for use in permanent well monitoring and directional drilling on the Norwegian continental shelf.
The acquisition cannot be completed until the Norwegian Competition Authority has approved the signed supply agreements and the signed global license agreement with a suitable and independent third party.

– It is the Norwegian Competition Authority’s assessment that the remedies the parties commit to will ensure continued effective competition in the markets for permanent well monitoring and directional drilling in Norway. Therefore, the Authority has approved the acquisition on these conditions, says Johannes Hjartlie, Project Manager at the Norwegian Competition Authority.