Oil and gas drilling contractor Nabors Industries and oilfield services company Tesco Corporation have received approvals for the previously announced acquisition of Tesco by Nabors from two key regulators.
Nabors announced the deal to acquire all of the issued and outstanding common shares of Tesco Corporation, with each outstanding share of common stock of Tesco being exchanged for 0.68 common shares of Nabors, in mid-August 2017.
In a statement on Monday, the two companies said they had received anti-trust clearance from the U.S. Department of Justice and the Canada Competition Bureau. In addition, the approval process with the Federal Antimonopoly Service of the Russian Federation was initiated, with its determination expected in the next few weeks.
The companies further stated on Monday that a joint integration team had been working since early September to plan the integration of Tesco and Nabors and assure rapid realization of the anticipated synergies. The team remains committed to yielding the transaction synergies estimated at the time of the announcement, the two companies said in the statement.
Nabors Chairman, President and CEO, Anthony G. Petrello, commented, “I am pleased to have obtained anti-trust clearance in two of the key markets. This clearance leaves the business intact and facilitates our timeline to closing. The work of the integration team is proceeding and its initial analysis indicates we will achieve the projected synergies. This bolsters our confidence in realizing our targets for Nabors Drilling Solutions for the next three years.”
Tesco President and CEO, Fernando Assing, commented, “We are pleased with the progress achieved on the transaction, including securing two of the key regulatory approvals. The Tesco team is excited about and remains committed to the integration with Nabors while maintaining focus on delivering results.”
The transaction between Nabors and Tesco will create a rig equipment and drilling automation provider by combining Canrig, Nabors rig equipment subsidiary, with Tesco’s rig equipment manufacturing, rental and aftermarket service business. Additionally, Tesco operates a tubular services business in numerous key regions globally, which will immediately benefit Nabors Drilling Solutions’ operation. The deal is expected to close in the fourth quarter.
Also in August, Nabors entered into an agreement with the shareholders of Robotic Drilling Systems (RDS), including Odfjell Drilling, Statoil Technology Invest, Investinor and Westcon, to buy all shares in RDS.
Norway’s RDS is a developer of a drill-floor solution consisting of robotic technology for fully unmanned drill floor operations. The system handles pipe and tools and the technology can be applied both on pipe-deck and drill-floor on all drilling structures for both land and offshore installations.
Offshore Energy Today Staff