SHARE
Image courtesy of Glassdoor.com.

A $1.7 billion bid by services firm Schlumberger to acquire a stake in Russia’s Euroasia Drilling Company has been called off after the Russian firm failed to approve the deal by the set deadline.

Euroasia confirmed on Wednesday that the merger has been scrapped and added that both firms are “continuing to work closely together under the existing five year Strategy Alliance Agreement signed in April 2011.”

The deal fell apart just days after Houston-based Schlumberger warned it would not extend the September 30 deadline it had set for officials to greenlight the purchase.

Schlumberger agreed in January to acquire a 45.65 percent stake in Euroasia for $22 per share.

Under the deal, the principal shareholders of Euroasia Drilling Company would have taken the company private and deslited it from the London Stock Exchange.

Schlumberger was set to acquire the stake after the delisting was complete.

The total cost of acquiring the minority interest, including the cost of a call option and various non-competition agreements, was set at about $1.7 billion.

Euroasia said on Wednesday that its global depository receipts will continue trading on the London Stock Exchange.

The company’s depositary bank, The Bank of New York Mellon, reopened the Euroasia’s books on October 1 for deposit or withdrawal of its global depository receipts that had been suspended while the transaction was pending.

“With respect to EDC’s strategy going forward, we are considering all options to support the company’s growth and development,” Euroasia said.

Schlumberger has not commented on the matter.