Oct 5 (Reuters) - Canadian rig contractor Precision Drilling Corp said on Friday it would buy smaller rival Trinidad Drilling Limited in a deal valued at C$1.03 billion ($796 million).

Precision said it has agreed to buy all shares of Trinidad on the basis of 0.445 common shares of Precision for each outstanding Trinidad share. ($1 = 1.2930 Canadian dollars) (Reporting by John Benny in Bengaluru; Editing by Shailesh Kuber)