Adding to a long list of recent mergers in the oil and gas industry, Noble Corporation announced Monday that it will purchase Diamond Offshore Drilling in a $16 billion stock and cash deal.
As part of the deal, Diamond shareholders will each get 0.2316 shares of Noble, as well as cash consideration of $5.65 per share for each share of Diamond stock. The overall implied cash and stock consideration for Diamond shareholders is $15.52 per share.
Noble had secured a $600 million committed bridge financing facility, which it plans to use to fund the cash portion of the deal. The purchase is expected to be completed by the first quarter of 2025 and is subject to the receipt of required regulatory approvals, along with shareholder approval.
After the acquisition, Noble will own and operate 41 rigs, including 13 jackups and 28 floaters. As of today, the backlog for the merged company would be around $6.5 billion.
