NEW YORK—Precision Drilling Trust, Canada’s largest oil-field-services provider, signed an agreement to buy Grey Wolf Inc. for about $1.98 billion to add drilling in the US market, two people with knowledge of the transaction said.

Stockholders of Grey Wolf, based in Houston, would get $5 and 0.188 trust unit per each share, said the people, who are close to Calgary-based Precision Drilling and declined to be identified because the terms haven’t been announced by the companies. The agreement comes two months after a higher bid was rejected.

Acquisitions of oil-field-services providers and drillers accelerated this year as record prices raised demand for rigs and support equipment. Grey Wolf rejected three previous bids from Precision in favor of its April agreement to acquire Basic Energy, a Midland, Texas-based oil-field contractor. Shareholders voted that deal down in July.

Precision will gain 121 rigs, mostly drilling for natural gas in the US, where rigs in operation have risen 13 percent this year to a record 1,998, according to weekly counts by Baker Hughes Inc. Canadian rigs have fallen 13 percent since a high of 457 were operating in February.

Precision had offered $10 a share in stock and cash to Grey Wolf in June. Today’s deal is valued at about $1.98 billion based on the stock’s August 22 closing price, less than the June offer of $2.2 billion.

Grey Wolf shareholders opened the door to Precision by rejecting in July a management plan to buy oil-field-services company Basic Energy Services for $1.4 billion. Precision chief executive officer Kevin Neveu said then he would immediately revive his offer to Grey Wolf.

Since then, natural-gas prices have tumbled, lowering the value of Precision’s trust units by 12 percent. Grey Wolf has dropped 11 percent from a high of $9.50 a share on June 23.

Natural gas futures on the New York Mercantile Exchange last closed 73 percent below a July 3 record of $13.58 per million British thermal units.

Neveu didn’t respond to an e-mail and a message left over the weekend on his office phone. Chief financial officer Doug Strong also couldn’t be reached by phone.

Grey Wolf chief financial officer David Wehlmann didn’t immediately respond to messages left over the weekend at his home and office.

The agreement was reported earlier by The Wall Street Journal. (Bloomberg)

Sulpicio gets 3 months to comply with insurance

The government has given Sulpicio Lines Inc., owner of the sunken MV Princess of the Stars, three more months to comply with procedures before it can once again carry passengers.

Delta opposes AMR-British Air immunity unless they cede slots

DALLAS—Delta Air Lines Inc. opposes antitrust immunity for American Airlines’ proposed transatlantic venture with British Airways Plc. unless the two carriers give up “significant” flight slots at London’s Heathrow Airport.

Precision Drilling may buy Grey Wolf

NEW YORK—Precision Drilling Trust, Canada’s largest oil-field-services provider, signed an agreement to buy Grey Wolf Inc. for about $1.98 billion to add drilling in the US market, two people with knowledge of the transaction said.

DP World to profit from expanded port network

DUBAI—DP World Ltd., the world’s fourth-largest port operator, may this week report first-half profit doubled on African acquisitions and greater handling capacity at its Dubai hub even as the world’s biggest economies slow.