SLB (NYSE:SLB) and ChampionX Corporation (NASDAQ:CHX) today unveiled a pivotal all-stock deal whereby SLB will acquire ChampionX.

The deal, unanimously approved by ChampionX's board, will see ChampionX shareholders receive 0.735 shares of SLB common stock for each share they hold, granting them roughly 9% ownership in the combined company.

SLB anticipates significant cost savings and revenue growth from the merger, projecting $400 million in annual pretax synergies within three years of closing.

The transaction is subject to customary approvals and is expected to be finalized by the end of 2024.

In a separate announcement, SLB revealed plans to return $7 billion to shareholders over the next two years. This includes raising its 2024 target to $3 billion and setting a $4 billion target for 2025.