Oil equipment merger
National Oilwell announced the acquisition of Varco International for a $2.5 billion stock swap. National Oilwell is already the #1 supplier of oil drilling equipment.
According to an article in The Houston Chronicle ("National Oilwell, Varco to create No. 1 equipment provider", 8/12/2004), the two companies make "equipment such as the big mud pumps that force drilling fluid down holes, top drives that sit atop rigs and turn drill stems, iron roughnecks that automatically screw and unscrew sections of pipe, and an array of less noticeable equipment like the shakers that separate rock chips from the mud."
"This combination continues National Oilwell's drive to supply nearly everything needed for oil exploration. What Varco will add is blowout preventers, fiberglass pipe manufacturing plants and a pipe-inspection and pipe-coating business," the article adds.
This comes as oil drilling and explorations are reaching new highs. Both of these companies are major international players, with operations in scores of companies. One analyst was quoted as saying almost every oil well in the world has equipment form one or the other company in use.
As the oil companies themselves concentrate, so does the industry supplying them with equipment and services. National Oilwell has aggressively acquired more than 30 companies over the past five years. Among those acquisitions are:
2000 Baylor Company, HiTec AS (Norway), Hart Sales Company, IRI International, Republic Supply Company, Whateley Gaso Omega
2001 AMTEX Pump & Supply, DEMIJ (Netherlands), Houston Scientific International, Maritime Hydraulics (Canada), Rigquip (UK), Rye Supply Company, Tech Power Controls, Texas Oil Works Supply
2002 HAL Oilfield Pump & Equipment, Hydralift, Integrated Power Systems, STS Oilfield Specialty
2003 LSI Specialty Electric Products, MonoFlo, Ogrey Mekansike Verksted (Norway)
8:40:43 PM 
|
|
