Noble to Buy Rival Driller Diamond Offshore in $1.6 Billion Deal

Noble Corp., the world’s biggest offshore oil-rig contractor by market value, agreed to buy its smaller rival Diamond Offshore Drilling Inc. in a deal valued at $1.6 billion.

Diamond stockholders will receive 0.2316 share of Noble plus $5.65 for each share they own, an 11.4% premium based on the June 7 closing price, according to a statement Monday. When the deal closes, Diamond shareholders will own about 14.5% of Noble’s outstanding shares.

The deal comes as offshore drilling is poised to boom in the years ahead as growth in US shale basins ebbs. Noble shares edged higher before the ...