This report does not constitute a rating action. MELBOURNE (S&P Global Ratings) June 27, 2023-- Perenti Ltd. 's proposed acquisition of DDH1 Ltd. will increase its scale and consolidate its position as a leading mining service provider. DDH1 is Australia's largest pure-play drilling service company, with operations in Australia, North America, and Europe. Following the acquisition, Perenti (BB/Stable/--) will have higher revenue exposure to tier-1 jurisdictions. This will reduce the company's exposure to higher-risk West and southern Africa (excluding Botswana), to 33% from 39%. Its commodity exposure will remain weighted to gold, with minimal exposure to coal. We consider the two companies to have complementary operations. The combined group can provide expanded services offerings, increasing their resilience to commodity cycles.
