The UK competition watchdog has opened an investigation into the proposed merger of offshore drillers Noble Corporation and Maersk Drilling.
The Competition and Markets Authority (CMA) said it was considering whether the deal would meet the merger provisions of the Enterprise Act 2002 and whether this would result in a substantial lessening of competition within the UK market for goods or services.
The CMA now has two months to make its decision and has invited any interested party to submit comments on the merger. It stated that it intends to announce its decision on whether or not to refer the merger to a phase 2 investigation by April 22 of this year.
In November last year, Noble and Maersk Drilling entered into a definitive agreement to combine in a primarily all-stock transaction. The deal is expected to create synergies of $125m per year and has been approved by both companies’ boards. The combined company would be named Noble Corporation, headquartered in Houston, and its shares would be listed on the New York Stock Exchange and Nasdaq Copenhagen. The transaction is targeted to close in mid-2022.
