Schlumberger, a big company that helps find and get oil and gas from the ground, has decided to join forces with another company called Aker Carbon Capture (ACC). They want to work together to help stop the Earth from getting too hot by catching carbon dioxide, which is a gas that contributes to global warming.
Schlumberger will own most of the new combined company and pay a lot of money for it. They might also give more money later based on how well the business does in capturing carbon dioxide. By working together, they hope to create better technology to capture this gas and help the environment.
Read from source...
1. The article title suggests that Schlumberger is expanding its carbon capture reach through a deal with Aker ACC, but it does not mention the exact details of the deal or how it will achieve this goal. This creates a misleading impression for readers who are interested in learning more about the specifics of the collaboration.
2. The article mentions that Schlumberger will own 80% of the combined business and ACC will own 20%, but it does not explain why this ownership structure was chosen or what benefits it will bring to both parties involved. This lack of clarity may raise questions about the motives behind the deal and its potential consequences for stakeholders.
3. The article states that Schlumberger will pay NOK 4.12 billion ($380.86 million) to acquire a majority stake in ACC, but it does not provide any context or comparison for this amount. Is it a fair price for the deal? How does it compare to similar deals in the industry? What are the financial implications of this investment for Schlumberger and ACC? These questions remain unanswered in the article.
4. The article claims that the combination will leverage ACC's commercial carbon capture product offering and SLB's new technology developments and industrialization capability, but it does not provide any evidence or examples to support this claim. How will these two entities collaborate and innovate? What are the expected outcomes and impacts of their joint efforts? These aspects are left vague and unsubstantiated in the article.
5. The article ends with a mention of the transaction being subject to regulatory approval, but it does not specify which regulations apply or what challenges they may pose for the deal. This leaves readers uncertain about the likelihood and timeline of the deal's completion and its future prospects.
1. Schlumberger's merger with Aker Carbon Capture (ACC) aims to advance large-scale industrial decarbonization by integrating carbon capture technology. The deal values the combined business at approximately $4 billion, with Schlumberger owning 80% and ACC 20%.
2. The merger will leverage ACC's commercial carbon capture product offering and Schlumberger's new technology developments and industrialization capability. This could result in a competitive advantage for the combined entity, as it can offer end-to-end solutions for carbon capture, utilization, and storage (CCUS).
3. The transaction is subject to regulatory approvals and customary closing conditions. It is expected to close in the second quarter of 2021.
4. Investment risks include the uncertainty surrounding the regulatory environment for carbon capture projects, the competitive landscape, and the potential for technological challenges or delays in developing and deploying new CCUS solutions.