The UK competition watchdog has accepted undertakings provided by Noble Corporation in relation to its merger with Maersk Drilling and has decided not to refer the deal for a further review.
Earlier this year, the Competition and Markets Authority (CMA) discovered that the deal raises competition concerns in the supply of jackup rigs for offshore drilling in the UK, Denmark, and the Netherlands.
The CMA raised concerns that the combined company would not face sufficient competition after the merger, which could lead to higher prices and lower quality services.
To obtain conditional antitrust clearance, offshore drillers proposed to sell Noble’s North Sea jackup rigs, including management and offshore crew for each of the rigs, as well as Noble’s leased office space and storage yard space.
In June, the NYSE-listed Noble sealed a deal to sell five jackup rigs to a newly formed subsidiary of Dubai-based Shelf Drilling for $375m.
“The CMA has today accepted undertakings in lieu of reference to Phase 2 given by Noble Corporation under section 73 of the Enterprise Act 2002,” the regulator said in a statement.
Noble launched the planned exchange offer for shares of Maersk Drilling in August. In addition to the CMA approval, which has now been secured, completion of the merger remains subject to acceptance by holders of at least 80% of Maersk Drilling shares, listing of Noble shares on the NYSE and Nasdaq Copenhagen, and other customary conditions. The exchange offer is expected to expire on September 8, 2022.
