Noble Shares Gain In Pre-Market After Signing Acquisition Deal With Frontier, Contracts With Shell

Noble Corporation NE, an offshore drilling contractor, has signed a merger agreement to acquire the privately-held FDR Holdings Limited (Frontier) in a cash transaction worth $2.16 billion. The Baar, Switzerland based company expects the deal to close by the end of July 2010. The acquisition of Frontier, an independent drilling company, is subject to customary closing conditions. Noble said that the deal will be accretive to its cash flows with immediate effect and would boost its earnings in 2011. In a separate deal, NE also entered into two 10-year ultra-deepwater-drillship contracts with Shell. Noble has also extended its one contract with Shell for 3 years. David W Williams, Chairman, President and Chief Executive Officer of Noble mentioned, "This acquisition is a highly complementary extension of our mid- and deepwater presence and positions us for additional growth in new market segments that can provide further opportunities for Noble and our customers. Noble's historical hallmark of a strong safety culture and our reputation for operational excellence should benefit Frontier's existing customers and drive value for our shareholders." NE’s shares gained 0.75% in the pre-market trading session. Read more from Benzinga's Company news. Learn how to find the best stocks to trade each day in our 70 page E-Book and 90 minute online video for free.