UPDATE 1-Cameron to acquire NATCO in all-stock deal

* NATCO is valued at $780 million

* Cameron says deal would add to earnings in 2010

NEW YORK, June 1 (Reuters) - Oilfield services company Cameron International Corp (CAM.N) will acquire NATCO Group Inc (NTG.N) in an all-stock deal that values its rival at $780 million, the companies said on Monday.

The deal would increase Cameron's presence in Southeast Asia, West Africa, the Middle East and Brazil, and broaden its product offerings in deepwater production processing and downstream markets.

Under the agreement, NATCO shareholders will receive 1.185 shares of Cameron common stock for each of NATCO's outstanding shares.

Cameron will issue around 24 million shares of common stock to NATCO shareholders.

The company said the transaction should add to earnings in 2010.

The boards of directors of both Cameron and NATCO have unanimously approved the transaction, which is expected to close during the third quarter of 2009. The deal is subject to regulatory approval.

Simmons & Company International were financial advisers of Cameron, while Barclays Capital served as financial adviser to NATCO. (Reporting by Juan Lagorio, editing by Matthew Lewis, Gary Hill)