ChampionX Acquisition Addresses SLB’s Relative Weakness in Chemicals

SLB has agreed to acquire ChampionX in an all-stock transaction to be completed by the end of 2024. After incorporating ChampionX into our SLB model, our fair value estimate remains unchanged at $62 as does our narrow moat rating. Our ChampionX fair value estimate increases to $46 from $32, as it reflects SLB’s offer of 0.735 SLB shares for each share of ChampionX. We consider this a good outcome for ChampionX shareholders. The overpayment by SLB based on our prior ChampionX fair value estimate is not material enough to move our SLB fair value.