US drilling contractor Nabors Industries is nearing completion of its its acquisition of Tesco Corp. following anti-trust clearance from the US Department of Justice and the Canada Competition Bureau.
An approval process with the Federal Antimonopoly Service of the Russian Federation has been initiated, with determination expected in coming weeks.
Nabors Industries' acquisition of Tesco Corp. will accelerate the automation and integration of tubular services into Nabors’ rigs, creating immediate global scale for Nabors Drilling Solutions (NDS), while providing Tesco with an expanded platform for its businesses, the firms said in August.
The all-stock transaction of $145 million, net of $72.5 million cash, was announced Monday (14 August) and will combine Canrig, Nabors’ rig equipment subsidiary, with Tesco's rig equipment manufacturing, rental and aftermarket service business.
Following its bid for Tesco, Nabors also moved to acquire Norway's Robotic Drilling Systems (RDS). Odjfell Drilling, which held about 37% of the shares in RDS through Odfjell Drilling Technology, expected the deal to close in Q3 2017.
As part of the sale, Odfjell Drilling and Nabors signed a memorandum of understanding to establish a strategic cooperation agreement to ensure Odfjell Drilling access to RDS’ robotic technologies for Odfjell Drilling’s existing and future drilling rigs.
Nabors Chairman, President and CEO Anthony G. Petrello, said: "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."