Oct 15 (Reuters) - Nabors Industries ( NBR ) on Tuesday

agreed to buy drilling services provider Parker Wellbore as the

oilfield services company aims to expand its global drilling

business.

The company would acquire Parker Wellbore for 4.8 million

shares of Nabors' common stock, subject to a share price collar,

and the assumption of net debt of about $100 million.

As of Nabors' last close, the 4.8 million shares translate

to $372.1 million, as per Reuters calculation.

Oilfield service providers are increasingly pursuing mergers

and acquisitions, as they navigate operational and pricing

challenges while catering to customers who have cut spending on

new wells in favor of investor returns.

A collar refers to an options strategy to protect against

significant losses amid short-term volatility in the market.

However, this strategy can also limit potential profits.

The acquisition is expected to close in early 2025 and is

estimated to be immediately add to Nabors' free cash flow along

with savings of $35 million.