Transocean to acquire Norway’s drilling-rig operator Aker Drilling for $1.43 bn

Transocean, the world's largest oil drilling contractor has launched a $1.43-billion cash bid for Norwegian drilling-rig operator Aker Drilling, paying almost double to expand its fleet of ultra-deepwater rigs.

Transocean, which supplied and operated the Deepwater Horizon rig to BP, which was involved in last year's Gulf of Mexico oil spill, offer of 26.50 kroner, represents a premium of 98 per cent to Aker's closing share price of 13.35 kroner on 12 August, valuing the Stavanger-based company's at 7.9 billion kroner ($1.43 billion).

Transocean said that 60.5 per cent of Aker's shareholders, including Aker Capital and TPG-Axon Capital, have committed to sell their shares to the transaction.

Aker Drilling operates two harsh environment, ultra-deepwater, sixth-generation semi-submersible rigs currently on long-term contract to Statoil and Det Norske in Norway. In 2013, Aker Drilling is expected to take delivery of two sixth-generation drill ships currently under construction at the Daewoo Shipbuilding & Marine Engineering Co's shipyard in South Korea.

Aker Drilling will contribute approximately $1.05 billion in firm contract backlog. The transaction is also expected to be immediately accretive to Transocean's earnings.

Steven Newman, president and CEO of Transocean, said, "Aker Drilling is an excellent strategic fit for Transocean. It allows us to enhance our position in Norway where we have enjoyed a long-term presence and excellent customer relationships. Aker Drilling's high-quality people and state-of-the-art offshore drilling fleet will ensure that we continue to deliver outstanding service to our customers."

Last year, Zug, Switzerland-based Transocean was one of the companies that were held responsible for the Deep-water Horizon explosion in the Gulf of Mexico which killed 11 people.