Schlumberger, the Oil industry services group has agreed upon buying its competitor, Smith International for $11.34bn, in an all-share deal.

However the takeover will require shareholder and regulatory approval which is valued at $45.84 per share, 37.5% more than the closing price last week.

This deal is the latest in the acquisition which will be getting unveiled in the concerned sector, due to the rising global crude oil prices in the past few months.

Oil services firms are involved in different jobs which it provides to the big oil companies, which includes the supply of equipment to direct involvement in the actual oil extraction work.

According to the CEO of Schlumberger, Smith's drilling technologies, other products and expertise complement with each other leading to the extension of the geographical boundaries worldwide.

This deal amongst the two US firms had been in talks for a long time.