Offshore drilling giant Noble Corporation has cleared the final regulatory hurdle in its acquisition of US-based offshore rig owner Diamond Drilling. The Australia Competition & Consumer Commission has granted its approval for the pending transaction between the two companies, paving the way for the deal to proceed.
This approval marks the last required regulatory consent, with both Noble and Diamond Drilling confirming that the transaction is now set to close on Wednesday, 4th September.
Noble first made its offer to acquire Diamond Drilling in June this year. The acquisition will be executed through a stock and cash transaction, where Diamond’s shareholders will receive 0.2316 shares of Noble for each Diamond share, along with a cash payment of $5.65 per share. This equates to a total cash consideration of approximately $600 million, distributed to shareholders on a fully diluted basis.
Upon completion of the deal, Diamond Drilling’s shareholders will own approximately 14.5% of Noble’s outstanding shares. Furthermore, Noble’s board of directors will expand to include one representative from Diamond’s board. The acquisition is valued at approximately $2.1 billion.
This strategic acquisition will bolster Noble’s rig fleet, increasing it from 31 to 41 owned rigs, plus the Vela drillship currently managed by Diamond Offshore. Of these 41 rigs, 28 will be semisubmersibles and drillships, while 13 will be jackups. Diamond Drilling will also contribute an estimated $2.1 billion in backlog, further enhancing Noble’s position in the offshore drilling market.
