Canadian drilling rig contractor Precision Drilling announced that it would buy rival Trinidad Drilling in a deal valued at C$1.03 billion ($796 million), trumping a bid from oilfield services provider Ensign Energy Services.
Precision, which expects to save $23.1 million through the deal, said the combined entity will have an enterprise value of approximately $3 billion and operate under the Precision name.
The merger will position Precision as the third-largest driller in the United States with a rig fleet that includes over 200 active rigs and 322 total rigs.
Excluding debt, the deal is valued at $425.3 million and is expected to close in late-2018.