BAUER Aktiengesellschaft: BAUER Group ends deep drilling technology joint venture with Schlumberger

The two companies agreed to discontinue their joint business due to persistently high overcapacity in the oil drilling business heightened by the low price of oil.

Since 2015, Schlumberger participated in two companies within the BAUER Group with a cash capital increase of 49%: BAUER Manufacturing LLC in the USA and BAUER Deep Drilling GmbH in Germany.

Due to termination of the joint venture, the BAUER Group has already taken over all shares in both companies. The parties have agreed not to disclose further details. There are no significant overall effects on the group results due to the full consolidation that must be carried out as a result of the company shares purchase. Moreover, goodwill no longer needs to be reported for the participations in the balance sheet of the BAUER Group.

Implementation of all further required steps is planned by the end of August 2020 at the latest.

About Bauer

The BAUER Group is a leading provider of services, equipment and products related to ground and groundwater. With over 110 subsidiaries, Bauer operates a worldwide network on all continents.

The operations of the Group are divided into three future-oriented segments with a high potential for synergy: Construction, Equipment and Resources. The Construction segment offers new and innovative specialist foundation engineering services alongside the established ones, and carries out foundation and excavation work, cut-off walls and ground improvements worldwide. Bauer is a world market leader in the Equipment segment and provides a full range of equipment for specialist foundation engineering as well as for the exploration, mining and extraction of natural resources. In the Resources segment, Bauer focuses on highly innovative products and services in the areas of water, environment and natural resources.

Bauer profits greatly from the collaboration between its three separate business divisions, enabling the Group to position itself as an innovative and highly specialized provider of products and services for demanding projects in specialist foundation engineering and related markets. Bauer therefore offers appropriate solutions for the world's major challenges, such as urbanization, growing infrastructure needs, the environment, and water, oil and gas.

The BAUER Group was founded in 1790 and is based in Schrobenhausen, Bavaria. In 2019, it employed some 12,000 people in around 70 countries and achieved total Group revenues of EUR 1.6 billion. BAUER Aktiengesellschaft is listed in the Prime Standard segment of the German stock market.

More information can be found at http://www.bauer.de.