Schlumberger is buying Cameron in a cash-and-stock deal valued at about $12.71 billion that would create an oilfield equipment and service powerhouse.
Cameron was the maker of the blowout preventer on the ill-fated Deepwater Horizon rig, which was rocked by an explosion and fire in 2010 that killed 11 workers and touched off an enormous oil spill.
Cameron International Corp. shareholders will receive 0.716 shares of Schlumberger common stock and a cash payment of $14.44 for each of their shares. That equates to a value of $66.36 per Cameron share. That's a 56 percent premium to the Houston company's Tuesday closing price of $42.47.
Schlumberger and Cameron put the acquisition's total value at $14.8 billion.
The combined company had 2014 pro forma revenue of $59 billion.
"We believe that the next industry technical breakthrough will be achieved through integration of Schlumberger's reservoir and well technologies with Cameron's leadership in surface, drilling, processing and flow control technologies," Schlumberger Chairman and CEO Paal Kibsgaard said in a written statement on Wednesday.
Cameron shareholders will own about 10 percent of Schlumberger Ltd.'s outstanding stock once the transaction closes.
The deal is expected to add to Schlumberger's earnings per share in the first year after closing.
Both companies' boards unanimously approved the acquisition, which is expected to close in 2016's first quarter. It still needs approval from Cameron shareholders.
Schlumberger has principal offices in Paris, Houston, London and The Hague.
Cameron shares jumped $19.53, or 46 percent, to $62 in premarket trading about two hours before the market open, while Schlumberger shares slipped 82 cents, or 1.1 percent, to $71.70.