Skip to main content

Offshore drilling contractor Rowan Cos.  (RDC) is in negotiations to acquire the drilling unit of Danish transport and logistics company Maersk, which is opting to sell the energy assets to turn its attention towards transportation, Bloomberg reports.

Shares of Houston-based Rowan were surging nearly 6% in late morning trading on Monday.

Maersk's drilling business could fetch around $4 billion, although this valuation is subject to change, according to the report. Talks remain ongoing, and could still fall apart as the assets have attracted interest from other buyers.

Rowan currently boasts a $1.4 billion market value, down from $5.6 billion in 2011 predicated on lower oil costs.

More of What's Trending on TheStreet: