Noble Corporation plc and Diamond Offshore Drilling Inc. have jointly announced the expiration of the waiting periodunder the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act) concerning their proposed merger. This regulatory step was completed on July 24, 2024.
Remaining Conditions and Shareholder Vote
The successful conclusion of the transaction now hinges on fulfilling the remaining customary closing conditions.
This includes securing approval from Diamond’s stockholders and obtaining clearance from the Australian Competition & Consumer Commission. Diamond stockholders are scheduled to vote on the merger on August 27, 2024, at 8:30 a.m. CDT.
Noble’s Strategic Acquisition to Enhance Portfolio
On June 10, Noble Corp. entered into an agreement to acquire Diamond Offshore Drilling in a transaction valued at $1.6 billion.
This strategic move aligns with Noble’s goal of bolstering its fleet with the latest deepwater rigs, solidifying its position as the premier offshore drilling contractor.
Combined Entity to Possess Largest Fleet of Modern Drillships
Reports from Bloomberg last month indicate that the merged company will boast the largest selection of modern drillships equipped with dual blowout preventers, a critical safety feature for deepwater drilling operations.
Financing and Board Expansion
Noble will utilize a $600 million bridge loan to finance the cash component of the deal. Additionally, the company plans to expand its board of directors to include a representative from Diamond. The board of Noble has also approved a 25% increase in its quarterly dividend to $0.50 per share, commencing in the third quarter.