Santa Fe Plans to Buy Global Marine

Santa Fe International Corp. agreed to buy rival Global Marine Inc. for $2.97 billion in stock, creating the world’s second-largest company that rents offshore drilling rigs to oil exploration companies.

Santa Fe will give 0.665 share for each share of Global Marine, which had 176.6 million shares outstanding as of Aug. 10, the companies said in a news release. That values the offer at $16.82 a share, a 17% premium to Global’s closing price Friday. Santa Fe, based in Dallas, also will assume $900 million in debt, according to the Wall Street Journal, which first reported the acquisition.

The combined company, to be called GlobalSantaFe Corp., will have 59 offshore rigs, 31 land rigs and another 13 rigs it is operating for other companies. It will be based in Houston, where Global Marine has its headquarters.

C. Steadman Garber Jr., president and chief executive of Santa Fe, will keep the same positions in the new company. Robert Rose, chairman and CEO of Global Marine, will serve as chairman of the new company. Santa Fe Chairman Gordon Anderson will serve on the new company’s 14-member board of directors. The companies said they will have equal representation on the board.