Saudi Arabian oil drilling group ADES International Holding has agreed to buy Oslo-listed rival Shelf Drilling for 3.9 billion Norwegian crowns ($380 million) in cash, the two companies said on Tuesday.
The offer of 14 crowns per share, a 62 per cent premium over Tuesday's closing price in Oslo, was recommended by Shelf's board, the companies said in a joint statement.The combined group will have 83 offshore jack-up drilling rigs serving the international oil and gas industry, they added.
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"With this landmark transaction, we reinforce our position as a market leader in shallow-water offshore drilling," ADES CEO Mohamed Farouk said in the statement.
The transaction is expected to close in the fourth quarter of 2025, subject to approval by an extraordinary general meeting of Shelf Drilling's shareholders and other conditions, the companies said.
