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Houston Business Journal

Schlumberger Ltd.’s (NYSE: SLB) proposed acquisition of Cameron International Corp. (NYSE: CAM) appears to be moving along according to plan.

On Nov. 17, the U.S. Department of Justice unconditionally cleared the $14.8 billion stock-and-cash deal between the two energy giants, which was first announced in August. The department granted an early termination of the waiting period required by the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

The acquisition is still expected to close in the first quarter of 2016, pending approval by Cameron stockholders, who will meet Dec. 17 to vote on the deal.

Until that time, Schlumberger and Cameron will continue to operate as separate and independent companies.

The companies are combining to reduce operating costs, streamline supply chains and improve manufacturing processes, according to a previous statement.

Schlumberger expects pretax synergies to total approximately $300 million and $600 million in the first and second year, respectively.

Cameron shareholders will receive 0.716 shares of Schlumberger common stock and a cash payment of $14.44 in exchange for each Cameron share.

Cameron recently cut 150 Houston jobs due to the ongoing oil slump, and 75 additional local cuts are planned. Although Cameron’s current job cuts are related to the industry downturn, analysts say the merger with Schlumberger could result in some job cuts.

Meanwhile, in other Houston energy megadeal news, Halliburton Co.’s (NYSE: HAL) proposed acquisition of Baker Hughes Inc. (NYSE: BHI) likely won’t close until at least after Dec. 17, and it could be extended into 2016, Halliburton previously said. When the deal was announced last November, it was expected to close in the second half of 2015. However, it has faced scrutiny at home and abroad, even as the companies announced plans to divest many of their business units to meet the conditions of various antitrust departments.

Earlier this week, Scott Bok, CEO of Greenhill & Co., said that “the stars have aligned for megadeals” in 2015. To watch his full interview on why megadeals like Schlumberger and Cameron’s are on the rise, click here.

Schlumberger and Cameron are the fourth- and eleventh-largest energy employers in Houston, respectively. Schlumberger has principal offices in Houston, Paris, London and The Hague, while Cameron is headquartered in Houston.