US Transocean Puts in Bid for GlobalSantaFe Corporation

The world's largest offshore drilling company, Transocean, has agreed to buy offshore oil and gas drilling contractor GlobalSantaFe Corporation in a $53bn merger.

The combination will create an organization with approximately 20,000 staff to provide a full range of offshore drilling services in the world's key regions, says Transocean.

"GlobalSantaFe's outstanding rig fleet complements Transocean's, and the combined company will have a global fleet of 146 rigs. This transaction will enhance our high-end floater fleet, including five newbuild ultra-deepwater units, while growing our position in the worldwide jackup market, especially in the Middle East, West Africa and the North Sea", says Transocean CEO, Robert L. Long.

Under the terms of the agreement, Transocean shareholders would receive $33.03 in cash and 0.6996 shares of the combined company for each share of Transocean they own. GlobalSantaFe shareholders would receive $22.46 in cash and 0.4757 shares of the combined company for each share. The total number of shares outstanding after the transaction will be approximately 318 million shares.

Transocean has a massive fleet of 82 mobile offshore drilling units consisting of a large number of high-specification deepwater and harsh environment drilling units. GlobalSantaFe is currently building an ultra-deepwater semisubmersible, scheduled for delivery in early 2009.

By staff writer