June 10 (Reuters) – Noble Corp (NE.N), opens new tab will buy smaller rival Diamond Offshore Drilling (DO.N), opens new tab in a cash-and-stock deal worth around $1.59 billion, the latest in a series of buyouts in a sector undergoing massive consolidation.

U.S. offshore driller Noble will pay $15.52 per Diamond Offshore share, of which $5.65 will be in cash and the rest in Noble stock, the companies said in a statement on Monday.

Diamond’s buyout comes as the oil and gas industry rides a wave of buyouts, With companies looking to bolster reserves and create economies of scale.