Monday, Maersk Drilling and Noble have received news from the British competition authority, which so far hasn’t approved the merger of the two rig companies.
Maersk Drilling and merging partner Noble have been given an update from the UK Competition and Markets Authority (CMA), which up until now has refused to approve the merger.
This is evident from a stock exchange announcement by Maersk Drilling Monday.
In an announcement, CMA has stated that there are reasonable grounds for the belief that Maersk Drilling and Noble’s proposal to divest a number of rigs, including related support and infrastructure required to operate the rigs, will be sufficient to get the UK’s approval for the merger.
The announcement comes after the two companies on April 29 stated that sales of the four rigs Noble Hans Deul, Noble Sam Hartley, Noble Sam Turner and Noble Houston as well as either Noble Lloyd Noble or Maersk Innovator were underway.
In Monday’s update, it’s clear that sale of the Noble rigs has been the point of departure.
Currently, a buyer of the rigs is sought, after which the CMA approval will be needed. A potential transaction is expected for completion in mid-2022.
The rationale behind the merger is still intact, writes Maersk Drilling in the announcement.
”[Noble Corp. and Maersk Drilling] believe that the financial and strategic rationale underpinning the transaction remains intact and compelling for all stakeholders irrespective of the divestment of the Remedy Rigs. The parties’ estimated annual run-rate cost synergies goal also remains unchanged. Further, the parties do not intend to change the exchange ratio agreed between them for purposes of the transaction,” it reads.
Under the current agreement, shareholders in Maersk Drilling will be able to exchange shares in the ratio 1 to 1.6137 in the new company.
