“Noble Corp” buys “Diamond Offshore” for $1.6 billion

Oilfield services company Noble Corp. announced Monday that it will buy its smaller competitor, Diamond Offshore, for $1.59 billion in a cash-and-stock deal, the latest in a series of acquisitions.

According to CNN, this acquisition comes at a time when major oil and gas companies are seeking to exploit the rise in oil prices and achieve record profits by expanding and merging with other companies, which enhances the prospects of companies such as Noble.

Industry insiders told Reuters that improving balance sheets and profit margins could help kick-start smaller-scale dealmaking in the oilfield services sector.

Noble said it would pay $15.52 for each Diamond Offshore share, which represents a premium of 11.4% over the stock’s closing price last Friday, and based on 102.48 million Diamond shares outstanding, Reuters calculations estimate the value of the deal at $1.59 billion.

The Diamond Offshore purchase comes on the heels of Noble’s $3.4 billion merger with Maersk Darling, which was completed in 2022.

Against the backdrop of this news, shares of Diamond Offshore Company rose by 7.82% before the opening of the American market in trading on Monday.