Liberty Oilfield Services' acquisition of Schlumberger's shale fracking business will make it the third-largest oilfield service firm by North American revenue, nudging out Baker Hughes Co in a bet on a shale rebound.

Denver-based Liberty Oilfield on Tuesday agreed to swap a 37% stake in the company in exchange for Schlumberger's North American hydraulic fracturing fleet, two Texas sand mines and other units.

The deal comes as oilfield companies have been hard-hit by the COVID-19 pandemic, which dealt a blow to fuel demand and drove shale oil and gas firms to slash drilling, cut spending and workers.

Consolidation will help oilfield sector recover, Liberty Oilfield Chief Executive Chris Wright told Reuters.

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