Despite the slump in global oil prices, Schlumberger's $14.8 billion acquisition of oil equipment manufacturer Cameron International is a good deal for both parties, Intervale Capital co-founder Charles Cherington said Wednesday.
"This is a merger of two great companies that can survive any downturn. Schlumberger needs broader exposure to differentiated subsidy products; Cameron provides that," Cherington said in a CNBC "Squawk Box" interview.
The deal was announced at a time when the global oil space, as well as the entire commodities complex, has come under pressure amid global growth concerns sparked by the Chinese economy.
U.S. crude futures were slightly lower on Wednesday, and remained near 6½-year lows.
"Timing notwithstanding, I think it's a good deal," Kurt Hallead, co-head of global energy research at RBC Capital Markets, told "Squawk Box," adding that it was only a matter of time before the deal was completed.
"When Schlumberger entered a joint venture with Cameron a few years ago, I thought that Cameron would wind up being acquired by Schlumberger. It's effectively the Schlumberger MO whenever they enter a joint venture of that size that they wind up buying the company," Hallead said.