Precision Drilling's deal for Grey Wolf approved

The Federal Trade Commission allowed an early end to the waiting period under the Hart-Scott-Rodino Act, which is used to determine if a takeover violates antitrust laws. The deal is still subject to other approvals, including approval by Grey Wolf shareholders.

Under the agreement, Precision Drilling will pay $1.12 billion in cash and 42 million shares valued at $663 million, based on Monday's closing stock price.

The deal gives Precision access to land operations in virtually every oil and gas basin in the lower 48 United States and Canada, and an emerging presence in Mexico.

Precision Drilling provides services to the North American oil and gas industry. Grey Wolf provides oil and gas land drilling services in the U.S.

Precision Drilling shares rose 4 percent, or 67 cents, to $16.45 in midday trading Tuesday. The shares have traded between $14.91 and $28.59 the past year.

Grey Wolf shares rose 5.5 percent, or 40 cents, to $7.70 in midday trading Tuesday. The shares have traded between $4.85 and $9.65 the past year.