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COPENHAGEN — Denmark’s Maersk Drilling and U.S. rival Noble Corp will merge in a $3.4 billion deal to type one of many world’s largest offshore oil drilling rig firms, they stated on Wednesday.
The mixed firm is anticipated to reap annual value financial savings of $125 million and it’ll take Noble Company’s identify and be headquartered in Houston, Texas, with possession cut up roughly 50-50 between the 2 firms’ present shareholders.
“The mix of Noble and Maersk Drilling will create a number one offshore driller with world scale, a powerful steadiness sheet and important free money move technology potential,” Noble board chair Chuck Sledge stated in a press release.
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The transaction is backed by a majority of shareholders at each firms and the brand new entity’s shares will probably be listed in each New York and Copenhagen, a joint assertion stated.
Noble Chief Govt Robert Eifler will turn out to be CEO of the merged enterprise.
The corporate will preserve a big working presence in Stavanger, Norway, to retain proximity to clients and help operations within the Norwegian and broader North Sea areas.
The merger will result in job losses to assist ship value cuts, the businesses stated with out specifying numbers.
“Within the quick time period the mixture will, sadly, impression our group, however it can additionally create a bigger and stronger firm, which is able to present future alternatives for development and new jobs,” stated Maersk Drilling CEO Jorn Madsen.
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The deal was “primarily” an all-shares transaction, although Maersk Drilling shareholders can have the power to elect to obtain money as an alternative of shares for as much as $1,000 every, topic to an combination cap of $50 million.
A Maersk spokesperson stated the corporate had estimated the mixed market capitalisation of the 2 firms at roughly $3.4 billion.
“The mixed firm will maintain an business main steadiness sheet, important value synergies, a contemporary fleet and with entry to a world shareholder base,” stated Robert Uggla, chief govt of A.P. Moller Holding, Maersk Drilling’s greatest shareholder. (Reporting by Jacob Gronholt-Pedersen in Copenhagen and Terje Solsvik in Oslo Enhancing by Muralikumar Anantharaman and David Goodman)
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