Noble Corporation and Diamond Offshore Provide Update on Expected Closing of Transaction

Rhea-AI Summary

Noble (NYSE: NE) and Diamond Offshore Drilling (NYSE: DO) have announced a significant update regarding their pending transaction. The companies have received clearance from the Australia Competition & Consumer Commission, which marks the final required regulatory approval for the deal. With this milestone achieved, Noble and Diamond Offshore are now set to close the transaction on Wednesday, September 4th, 2024. This development represents a important step forward in the merger process between these two major players in the offshore drilling industry.

Positive

• Final regulatory approval received for the Noble-Diamond Offshore merger
• Transaction closing date set for September 4th, 2024

Negative

• None.

Insights

Financial Analyst

The pending merger between Noble and Diamond Offshore Drilling has cleared its final regulatory hurdle, signaling a significant consolidation in the offshore drilling industry. This merger could create a more robust entity with enhanced market presence and operational efficiencies. Investors should consider the potential for:

• Improved bargaining power with customers
• Cost synergies and operational optimizations
• Enhanced fleet utilization and day rates

However, integration challenges and market volatility in the oil and gas sector remain key risks. The swift closing date of September 4th suggests both companies are eager to capitalize on current market conditions, possibly indicating confidence in near-term industry prospects.

Legal Expert

The clearance from the Australia Competition & Consumer Commission marks a important milestone in the Noble-Diamond merger. This approval suggests that regulatory bodies see no significant anticompetitive effects in the offshore drilling market. Key legal implications include:

• Compliance with international antitrust regulations
• Potential restructuring of contracts and assets
• Shareholder rights and corporate governance adjustments

The swift regulatory process indicates a relatively smooth legal pathway, which is positive for investor confidence. However, post-merger integration may still face legal challenges, particularly in harmonizing corporate structures and international operations.

Market Research Analyst

The Noble-Diamond merger reflects ongoing consolidation trends in the offshore drilling sector, driven by market pressures and the need for operational scale. This transaction could reshape competitive dynamics:

• Potential for increased pricing power in certain regions
• Enhanced ability to invest in technology and innovation
• Possible ripple effects spurring further industry consolidation

Investors should monitor how this merger impacts global fleet utilization rates and day rates. The timing aligns with a period of recovery in offshore drilling, suggesting the combined entity aims to capitalize on improving market conditions. However, the success of this merger will largely depend on effective integration and market reception to the new entity's combined offerings.

SUGAR LAND, Texas, Aug. 30, 2024 /PRNewswire/ -- Noble Corporation plc ("Noble") (CSE: NOBLE, NYSE: NE) and Diamond Offshore Drilling, Inc. ("Diamond Offshore") (NYSE: DO) announced today the receipt of clearance from the Australia Competition & Consumer Commission, in relation to the pending transaction between Noble and Diamond Offshore, which is the final required regulatory approval for the transaction.  The parties expect to close the transaction on Wednesday September 4^th, 2024.

About Noble Corporation plc
Noble is a leading offshore drilling contractor for the oil and gas industry.  The Company owns and operates one of the most modern, versatile, and technically advanced fleets in the offshore drilling industry.  Noble and its predecessors have been engaged in the contract drilling of oil and gas wells since 1921.  Noble performs, through its subsidiaries, contract drilling services with a fleet of offshore drilling units focused largely on ultra-deepwater and high specification jackup drilling opportunities in both established and emerging regions worldwide.  For further information visit www.noblecorp.com or email investors@noblecorp.com.

About Diamond Offshore Drilling, Inc.
Diamond Offshore is a leader in offshore drilling, providing innovation, thought leadership and contract drilling services to solve complex deepwater challenges around the globe. Additional information and access to the Company's SEC filings are available at http://www.diamondoffshore.com.

Forward-Looking Statements
This communication includes "forward-looking statements" within the meaning of U.S. federal securities laws, including Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act, of 1934, as amended. You can identify these statements and other forward-looking statements in this document by words such as "expects," "continue," "focus," "intends," "anticipates," "plans," "targets," "poised," "advances," "drives," "aims," "forecasts," "believes," "approaches," "seeks," "schedules," "estimates," "positions," "pursues," "progress," "may," "can," "could," "should," "will," "budgets," "possible," "outlook," "trends," "guidance," "commits," "on track," "objectives," "goals," "projects," "strategies," "opportunities," "potential," "ambitions," "aspires" and similar expressions, and variations or negatives of these words, but not all forward-looking statements include such words. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about the consummation of the pending transaction between Noble and Diamond Offshore (the "Transaction"), including the expected time period to consummate the Transaction. All such forward-looking statements are based upon current plans, estimates, expectations and ambitions that are subject to risks, uncertainties and assumptions, many of which are beyond the control of Noble and Diamond Offshore, that could cause actual results to differ materially from those expressed in such forward-looking statements. Key factors that could cause actual results to differ materially include, but are not limited to the risk that uncertainties as to whether the Transaction will be consummated on the anticipated timing or at all, or if consummated, will achieve its anticipated economic benefits; Noble's ability to integrate Diamond Offshore's operations in a successful manner and in the expected time period; the possibility that any of the anticipated benefits and projected synergies of the Transaction will not be realized or will not be realized within the expected time period; the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement; risks that the anticipated tax treatment of the Transaction is not obtained; unforeseen or unknown liabilities; customer and other stakeholder approvals and support; unexpected future capital expenditures; potential litigation relating to the Transaction that could be instituted against Noble or Diamond Offshore or their respective directors; the possibility that the Transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; the effect of the pendency or completion of Transaction on the parties' business relationships and business generally; risks that the Transaction disrupts current plans and operations of Noble or Diamond Offshore, as well as the risk of disruption of Noble's or Diamond Offshore's management and business disruption during the pendency of, or following, the Transaction; changes in commodity prices; negative effects of the announcement of the Transaction, and the pendency or completion of the Transaction on the market price of Noble's or Diamond Offshore's common stock and/or operating results; rating agency actions and Noble's and Diamond Offshore's ability to access debt markets on a timely and affordable basis; decline in the price of oil or gas, reduced demand for oil and gas products and increased regulation of drilling and production, price competition and cyclicality in the offshore drilling industry, offshore rig supply, dayrates and demand for rigs, contract duration, renewal, terminations and repricing, national oil companies and governmental clients, contract backlog, customer and geographic concentration, operational hazards and risks, labor force unionization, labor interruptions and labor regulations, major natural disasters, catastrophic event, acts of war, terrorism or social unrest, pandemic, or other similar event, joint ventures as well as investments in associates, international operations and related mobilization and demobilization of rigs, operational interruptions, delays, upgrades, refurbishment and repair of rigs and any related delays and cost overruns or reduced payment of dayrates, impacts of inflation, renewal of insurance, protection of sensitive information, operational technology systems and critical data, the ability to attract and retain skilled personnel or the increased cost in doing so, supplier capacity constraints or shortages in parts or equipment, supplier production disruptions, supplier quality and sourcing issues or price increases, future mergers, acquisitions or dispositions of businesses or assets or other strategic transactions, hurricanes and windstorm damage, responding to energy rebalancing, non-performance of suppliers or third-party subcontractors, increasing attention to environmental, social and governance matters, including climate change; the effects of industry, market, economic, political conditions outside of Noble's or Diamond Offshore's control; and the risks described in Part I, Item 1A "Risk Factors" of (i) Noble's Annual Report on Form 10-K for the year ended December 31, 2023 and (ii) Diamond Offshore's Annual Report on Form 10-K for the year ended December 31, 2023, and, in each case, in subsequent filings with the U.S. Securities and Exchange Commission ("SEC"). Other unpredictable or factors not discussed in this communication could also have material adverse effects on forward-looking statements. Neither Noble nor Diamond Offshore assumes an obligation to update any forward-looking statements, except as required by law. You are cautioned not to place undue reliance on any of these forward-looking statements as they are not guarantees of future performance or outcomes and that actual performance and outcomes. These forward-looking statements speak only as of the date hereof. With respect to our capital allocation policy, distributions to shareholders in the form of either dividends or share buybacks are subject to the Board of Directors' assessment of factors such as business development, growth strategy, current leverage and financing needs. There can be no assurance that a dividend will be declared or continued.

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SOURCE Noble Corporation plc; Diamond Offshore Drilling, Inc.

FAQ

When is the expected closing date for the Noble and Diamond Offshore merger?

The expected closing date for the Noble (NYSE: NE) and Diamond Offshore merger is Wednesday, September 4th, 2024.

What was the final regulatory approval needed for the Noble-Diamond Offshore transaction?

The final regulatory approval needed was clearance from the Australia Competition & Consumer Commission, which has now been received.

Has Noble (NYSE: NE) received all necessary regulatory approvals for its merger with Diamond Offshore?

Yes, Noble (NYSE: NE) has received all necessary regulatory approvals for its merger with Diamond Offshore, with the Australia Competition & Consumer Commission clearance being the final required approval.