Noble to acquire rival Diamond Offshore for $1.6 billion

Noble to acquire rival driller Diamond Offshore for $1.6 billion

LONDON, June 10, 2024 – Drilling giant Noble Corporation will acquire its smaller rival Diamond Offshore Drilling in a deal valued at USD 1.6 billion, the two companies announced on Monday.

The definitive merger agreement stipulates a stock plus cash transaction. Upon closing, Diamond shareholders will own approximately 14.5% of Noble’s outstanding shares.

“Our position will be strengthened with the addition of four seventh-generation drillships and one of the most high-spec harsh environment semisubmersible rigs in the world. Additionally, Diamond’s five conventional deepwater and midwater rigs have averaged above 85% utilisation over the last three years and currently have strong forward contract coverage,” Noble president and CEO Robert Eifler said.

“Supported by Diamond’s USD 2.1 billion of backlog and USD 100 million of anticipated cost synergies, we expect the transaction to be immediately accretive to our free cash flow per share and contribute to accelerated growth in our return of capital to shareholders.”

Noble ranks as the world’s largest offshore rig contractor by market value.

Image courtesy of Noble Corporation.

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