Noble and Maersk Drilling to Combine in $3.4 Billion Merger
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Noble Corporation and Maersk Drilling have entered into a definitive business combination agreement to combine in a primarily all-stock transaction. Following the completion of the transaction, the Maersk Drilling shareholders and Noble shareholders will each own approximately 50 percent of the outstanding shares of the combined company. The combined company will be named Noble Corporation.
Noble and Maersk Drilling share a very strong conviction about the compelling industrial logic for taking this step to create a differentiated offshore drilling company with the scale, capabilities, and resources to successfully serve a broad range of customers. The combined company will have a modern, high-end fleet of floaters and jackup rigs across benign and harsh environments able to meet the needs of customers in the most attractive oil and gas basins. This transaction will unite and leverage the strong capabilities of Noble and Maersk Drilling, which both have decades of experience, differentiated value propositions, and unwavering commitments to best-in-class safety and service quality.
The business combination agreement has been unanimously approved by the boards of directors of Noble and Maersk Drilling.
“This combination carries strong industry logic. With the combination we are creating a differentiated provider of offshore drilling services, which will be able to enhance the customer experience through increased scale, global reach, and industry-leading innovation,” said Maersk Drilling’s Chairperson of the Board of Directors, Claus V. Hemmingsen.
“The combination will create value for all shareholders and will offer investors a unique opportunity to benefit from the market recovery, a robust financial position and strong free cash flow potential, all paving the way for the potential return of capital to shareholders,” added Hemmingsen.
“The combination of Noble and Maersk Drilling will create a leading offshore driller with global scale, a strong balance sheet and significant free cash flow generation potential. The transaction will be accretive to free cash flow per share, and I am confident that this combination will deliver meaningful value to all shareholders,” said Noble’s Chairperson of the Board of Directors, Chuck Sledge.
Upon the closing of the transaction, Robert Eifler, Noble’s president and chief executive officer, will become president and chief executive officer of the combined company and will be a member of the board of directors.
“Both Noble and Maersk Drilling have many decades of history as leaders in the offshore drilling industry. I look forward to the future as these two great organizations come together to create a stronger combined company. Our shared passion for safety and operational performance will drive better service for our customers while delivering better potential returns to our investors,” said Robert Eifler.
The combined company will have a seven-member board of directors with balanced representation from Noble and Maersk Drilling. Initially, the board of directors will be comprised of three directors designated by Noble, three directors designated by Maersk Drilling, and Robert W. Eifler. Charles M. (Chuck) Sledge will become chairman of the board of directors jointly appointed by Noble and Maersk Drilling. Claus V. Hemmingsen will be one of the three directors designated by Maersk Drilling.
About Noble
Noble is a leading offshore drilling contractor for the oil and gas industry. The company owns and operates one of the most modern, versatile, and technically advanced fleets in the offshore drilling industry. Noble and its predecessors have been engaged in the contract drilling of oil and gas wells since 1921. Currently, Noble performs, through its subsidiaries, contract drilling services with a fleet of 20 offshore drilling units, consisting of 12 drillships and semisubmersibles and eight jackups, focused largely on ultra-deepwater and high-specification jackup drilling opportunities in both established and emerging regions worldwide. .
To stop by Noble’s website, CLICK HERE
About Maersk Drilling
With more than 45 years of experience operating in the most challenging offshore environments, Maersk Drilling provides responsible drilling services to energy companies worldwide. Maersk Drilling owns and operates a fleet of 19 offshore drilling rigs and specializes in harsh environment and deepwater operations. Headquartered in Denmark, Maersk Drilling employs around 2,400 people.
To stop by Maersk’s website, CLICK HERE
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