Noble To Buy Diamond Offshore Drilling: What To Know

If Noble's bid for Diamond Offshore goes through, it will create one of the world's largest offshore drilling companies.

offshore oil drilling rig platform in ocean at sunset
(Image credit: Getty Images)

Early Monday, Noble (NE) said it will acquire Diamond Offshore Drilling (DO) for $1.59 billion in cash and stock. The deal works out to $15.52 per DO share, or an 11.4% premium to Diamond's June 7 close.

Under the terms of the agreement, Diamond shareholders will receive 0.2316 share of Noble and $5.65 in cash for each DO share they own. Following the closing of the transaction, Diamond shareholders will own approximately 14.5% of Noble.

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Joey Solitro

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.