U.K. Regulators Clear Way for Merger in View of Parties' Proposed Undertakings
HOUSTON--(BUSINESS WIRE)--Nov. 26, 2007--The Office of FairTrading for the United Kingdom (OFT) today announced that, subject tosatisfactory undertakings from the parties, it has decided not torefer the proposed merger of Transocean Inc. (NYSE:RIG) andGlobalSantaFe Corporation (NYSE:GSF) to the U.K. CompetitionCommission for further investigation. Instead, the OFT considers thatthe undertakings offered by the parties to divest the GlobalSantaFefloaters that would be working in the U.K. sector of the North Seaabsent the merger will remedy the possible antitrust concernsidentified in the course of its first stage review. The parties' offerof divestiture includes the GSF Arctic II and the GSF Arctic IV butdoes not include any jackup rigs. A third GlobalSantaFe floaterpresently working in the North Sea, the GSF Arctic III, is expected toleave the North Sea upon completion of its current contract, and onthat basis was not included in the parties' offer.
In view of today's decision by the OFT, the parties still expectto close the transaction as scheduled on November 27, 2007, subject toremaining closing conditions.
Transocean Inc. is the world's largest offshore drillingcontractor with a fleet of 81 mobile offshore drilling units. Thecompany's mobile offshore drilling fleet, consisting of a large numberof high-specification deepwater and harsh environment drilling units,is considered one of the most modern and versatile in the world due toits emphasis on technically demanding segments of the offshoredrilling business. The company's fleet consists of 33High-Specification Floaters (semisubmersibles and drillships), 19Other Floaters, 25 Jackups and other assets utilized in the support ofoffshore drilling activities worldwide. The company also has sixHigh-Specification Drillships under construction. With a currentequity market capitalization in excess of $37 billion, TransoceanInc.'s ordinary shares are traded on the New York Stock Exchange underthe symbol \"RIG.\"
GlobalSantaFe is one of the largest offshore oil and gas drillingcontractors and the leading provider of drilling management servicesworldwide. The company owns or operates a contract drilling fleet of37 premium jackup rigs; six heavy-duty, harsh environment jackups; 11semisubmersibles and three dynamically positioned, ultra-deepwaterdrillships, as well as two semisubmersibles owned by third parties andoperated under a joint venture agreement. In addition, it is scheduledto take delivery of a new ultra-deepwater semisubmersible in 2009 anda new ultra-deepwater drillship in 2010. For more information aboutGlobalSantaFe, go to http://www.globalsantafe.com.
Statements included in this news release regarding the completionof the proposed transaction, negotiations with regulators,divestitures, benefits, opportunities, timing and effects of thetransaction, and other statements that are not historical facts, areforward-looking statements. These statements involve risks anduncertainties including, but not limited to, actions by regulatoryauthorities or other third parties, results of negotiation withregulators, definitive terms of undertakings, consummation offinancing, satisfaction of closing conditions, and other factorsdetailed in risk factors and elsewhere in the companies' joint proxystatement dated Oct. 2, 2007 and both companies' Annual Reports onForm 10-K and their respective other filings with the Securities andExchange Commission. Should one or more of these risks oruncertainties materialize (or the other consequences of such adevelopment worsen), or should underlying assumptions prove incorrect,actual outcomes may vary materially from those forecasted or expected.Both companies disclaim any intention or obligation to update publiclyor revise such statements, whether as a result of new information,future events or otherwise.
CONTACT: Transocean Inc., Houston
Gregory S. Panagos, 713-232-7551
Guy A. Cantwell, 713-232-7647
SOURCE: Transocean Inc.