Oslo-listed Acergy will acquire oil services rival Subsea 7 in an all-share deal that creates a massive global subsea player with a combined market capitalization of around US$5.4 billion.
The Norwegian oil services companies said the combined firm will be better able to meet the growing size and technical complexity of subsea projects, driven by demand to access more remote reserves in increasingly harsh environments. The amalgamation will bring together a full spectrum of subsea services; SURF, conventional and life-of-field.
Concern has been raised in the backdrop of the drilling moratorium in the United States Gulf of Mexico. Analysts believe the fall out from the BP disaster and predicted slowdown in deep water activity has accelerated the acquisition. The chief executive-to-be, Jean Cahuzac, said the Gulf of Mexico represented 5% of the new firm's total revenue and less than 2% of the backlog.
Shares in both companies rallied over 10 percent in Oslo.
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