Oil Drillers Noble, Maersk to Combine in $3.4 Billion Merger

The combined company is expected to reap annual cost savings of $125 million and it will take Noble Corp.’s name and be headquartered in Houston.

Reuters

Denmark’s Maersk Drilling and U.S. rival Noble Corp. will merge in a $3.4 billion deal to form one of the world’s largest offshore oil drilling rig companies, they said on Nov. 10.

The combined company is expected to reap annual cost savings of $125 million and it will take Noble Corp.’s name and be headquartered in Houston, with ownership split roughly 50:50 between the two companies' existing shareholders.

“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,” Noble board chair Chuck Sledge said in a statement.

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