Milbank, Tweed, Hadley & McCloy LLP is advising leading oil exploration and servicing company Nabors Industries Ltd. in the announced merger of its completion and production services unit with oilfield services provider C&J Energy Services, for which Nabors will receive nearly US$ 940 million in cash and stock worth an approximately 53% ownership stake in C&J.
The transaction, expected to close by the end of 2014, is valued at about US$ 2.86 billion. The Milbank team representing Nabors is led by Corporate partner Charles Conroy.
The Nabors-C&J deal is expected to produce one of the largest oil well maintenance businesses in North America. The new entity will retain the C&J name and be run by C&J management out of its Houston headquarters. Nabors will continue its strategic focus on its core drilling operations.
Comments
Conroy commented: “We are pleased to once again be representing Nabors, in helping achieve a strategic reorientation of its drilling business and enhance its financial position, while gaining it a majority share in what is now a leading diversified maintenance and services company. The merger with Nabors’ well completion and production unit provides C&J a strong geographic and industry-wide platform and positions it for international expansion. Both companies emerge from this tie-up more secure and focused than before.”
Adapted from press release by Katie Woodward