HOUSTON (AP) — The world’s largest offshore drilling contractor got bigger with yesterday’s announcement by Transocean that it will combine with GlobalSantaFe, creating a company able to drill globally from shallow to ultradeep waters.
Analysts largely applauded the coupling and said more combinations could be forthcoming.
The shares of both companies rose.
The deal, announced jointly by both Houston companies, includes a $15 billion cash payout to shareholders of both the world’s largest contractor, Transocean Inc., and GlobalSantaFe Corp.
Shareholders of both companies also will receive shares in the new company, which will retain the Transocean name and trade on the New York Stock Exchange under Transocean’s symbol “RIG.”
The value of the new company will be about $53 billion, including debt.
Transocean Chief Executive Officer Robert Long, who will continue as chief executive of the combined company, said the deal will allow the company to keep pace as the industry continues to expand and will “assure us of a leading presence in almost every major offshore drilling province in the world.”
“We’ll also benefit from economies of scale leading to cost reduction,” Mr. Long said.
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