RIG - Noble Corporation And Diamond Offshore Drilling: A Sensible Marriage
2024-06-10 17:08:13 ET
Summary
- Noble Corporation is acquiring Diamond Offshore Drilling in a cash and stock transaction worth over $2 billion.
- The deal is expected to create operating synergies and make Noble Corporation a larger player in the offshore drilling industry.
- Shareholders of Diamond Offshore Drilling have the opportunity for upside if the deal goes through, with a discount currently offered.
June 10th was a pretty big day for shareholders of both Noble Corporation plc ( NE ) and Diamond Offshore Drilling, Inc. ( DO ). Shares of the former rose by roughly 5.4% while shares of the latter jumped 10.3%. These moves higher were driven by the announcement that Noble Corporation will be acquiring Diamond Offshore Drilling in a cash and stock transaction with an enterprise value of just over $2 billion. In addition to growing Noble Corporation into an even larger player in the offshore drilling space, this maneuver opens up the door for rather large operating synergies. Whether the deal makes sense will ultimately depend on whether those synergies are realized. But given the market’s reaction, it seems the probability of that is viewed as high....
Noble Corporation And Diamond Offshore Drilling: A Sensible Marriage