Oil rivals team up to build new drilling giant
Maersk Drilling and Noble Corporation announced a $3.4bn merger to create one of the world’s largest offshore oil drilling rig companies.
The merger will establish a new titan in the market with a fleet of 20 floaters and 19 jack-up rigs.
The combined company will take Noble’s name and will be listed on both the New York Stock Exchange and Nasdaq Copenhagen.
It will also be lead by Noble chief executive Robert Eifler.
Ownership will be split roughly 50-50 between existing shareholders of both the Danish and American companies.
The combined company will take Noble’s name and will be listed on both the New York Stock Exchange and Nasdaq Copenhagen.
It run by the Noble chief executive Robert Eifler.
The new giant is expected to reap annual savings of $125m and have free cash flow potential of up to $375m in 2023, alongside a cash balance of approximately $900m.
Eifler said: “I look forward to the future as these two great organisations come together to create a stronger combined company.”
The agreement was revealed as the COP 26 climate conference in Glasgow reaches its final stages.
The UK has published the summit’s draft documents and has already established new pledges for phasing out fossil fuel usage.
The International Energy Agency is also calling for an end to new oil or gas investment to limit global warming.
This deal could act as a hefty buffer against any potential environmental policy developments, as the merger could generate $1.7bn of taxed and capitalised synergies, alongside a combined $1.7bn market cap.