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在线翻译:
szdaily -> Business
China Merchants explores offshore rig operator deals
    2017-September-5  08:53    Shenzhen Daily

STATE-OWNED conglomerate China Merchants Group is exploring acquisitions of offshore rig operators, which have struggled to recover from a collapse in oil-industry spending, sources with knowledge of the matter said.

The firm has looked at various assets and companies including Seadrill Ltd. and Shelf Drilling Ltd., the sources said. Deliberations are at an early stage, and China Merchants hasn’t made any formal offers, according to the sources. It may opt to pick off assets as opposed to full takeovers, the sources said.

China Merchants Group hasn’t yet finalized the exact structure of any potential deals and could decide against pursuing the purchases, according to the sources. A full takeover of Seadrill would be difficult given the company’s debt restructuring, which could impact the timing of any transaction, one of the sources said.

Consolidation in the oil services sector is picking up as the slide in oil prices forced clients to rein in spending and defer large projects. Crude oil prices have fallen by about half over the past three years as a supply glut hurts spending across the industry.

“The offshore drilling industry needs to consolidate in order to address the massive overcapacity issues it faces,” said Elvis Pellumbi, London-based chief investment officer at CF Opportunity Fund, which invests in energy companies. “The recently announced deals are great examples of fantastic industrial logic and great value for both buyers and sellers. There will be more such deals in the next few months.”

China Merchants runs businesses spanning ports, toll roads and shipping to real estate, financial services and offshore engineering. (SD-Agencies)

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