The Noble Corporation and The Drilling Company of 1972 (Maersk Drilling) on Nov. 10 announced that they have agreed to combine both businesses under a 50/50 partnership with the combined name Noble Corporation.
Sharing a common ground of offshore drilling, Noble Corporation and Maersk will focus on contemporary and high-end fleet floaters and jackup rigs placed in rough environments through their new combined business venture, according to a press release from Noble Corporation.
"This combination carries strong industry logic," Maersk Drilling's Chairperson of the Board of Directors, Claus V. Hemmingsen said, according to the release. "With the combination, we are creating a differentiated provider of offshore drilling services, which will be able to enhance the customer experience through increased scale, global reach, and industry-leading innovation. The combination will create value for all shareholders and will offer investors a unique opportunity to benefit from the market recovery, a robust financial position and strong free cash flow potential, all paving the way for the potential return of capital to shareholders."
Collectively, both ventures are projected to generate $125 million (U.S.) worth of synergies, according to the release.
"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 Chairperson of the Board of Directors, Charles Sledge said, according to the release. "The transaction will be accretive to free cash flow per share, and I am confident that this combination will deliver meaningful value to all shareholders."
The transaction will also grant The Drilling Company with approximately 53% of Noble shares, according to the press release.
"Both Noble and Maersk Drilling have many decades of history as leaders in the offshore drilling industry," Noble President and CEO Robert Eifler said, per the release. "I look forward to the future as these two great organizations come together to create a stronger combined company. Our shared passion for safety and operational performance will drive better service for our customers while delivering better potential returns to our investors."
The press release reports that various APMH Invest A/S credited with owning 12% of the shared capital will also contribute to the transaction.
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