Oil Drillers Noble, Maersk to Form One of the World’s Largest Offshore Oil Drilling Rig Companies

Denmark’s Maersk Drilling and U.S. rival Noble Corp. have agreed to merge in a $3.4 billion deal to form one of the world’s largest offshore oil drilling rig companies.

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, Texas with ownership split roughly 50:50 between the two companies' existing shareholders.

The transaction is backed by a majority of shareholders at both companies and the new entity’s shares will be listed in both New York and Copenhagen. Noble chief exec Robert Eifler will become CEO of the merged business.

The company will maintain a significant operating presence in Stavanger, Norway, to retain proximity to customers and support operations in the Norwegian and broader North Sea regions. The merger will lead to job losses to help deliver cost cuts, the companies said without specifying numbers.

The deal was “primarily” an all-shares transaction, though Maersk Drilling shareholders will have the ability to elect to receive cash instead of shares for up to $1,000 each, subject to an aggregate cap of $50 million. A Maersk spokesperson said the company had estimated the combined market capitalization of the two companies at approximately $3.4 billion.