C&J Energy Services Hits It Out of the Park With Nabors Industries
Maybe Schlumberger's (NYSE: SLB ) announcement that it was increasing its long-term growth rates was a sign that the oilfield services sector was about to consolidate to exploit improving industrywide growth rates. In this case, C&J Energy Services (NYSE: CJES ) is purchasing the completion and production services of Nabors Industries (NYSE: NBR ).
The Nabors division is actually roughly double the size of C&J Energy in nearly all key metrics. Making the deal even more interesting, Nabors will accept a sizable position in the new combined entity instead of completely cashing out. Typically when a business accepts a lot of stock in such a deal it views the combination as having plenty of synergies that will create value and make the company more valuable.
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