Ensco to Buy Rowan in $2.38 Bln Deal

By John Benny
Monday, October 8, 2018

Offshore driller Ensco Plc said on Monday it plans to buy smaller rival Rowan Cos Plc in an all-stock deal valued at $2.38 billion, as it looks to expand its fleet and benefit from a partnership with Saudi Aramco.

This is Ensco's second deal since OPEC-led efforts boosted oil prices in the second half of 2016. Ensco bought rival Atwood Oceanics in a similar deal last year.

Rowan shareholders will receive 2.215 Ensco shares for each share held. Following the close of the deal, Ensco shareholders will own 60.5 percent of the combined company.

The combined company, which will have an enterprise value of about $12 billion, will have a fleet consisting of 28 floating rigs and 54 jack-ups with drilling operations in the Gulf of Mexico, Brazil and West Africa, among others.

The company will benefit from Rowan's strategic joint venture with Saudi Aramco, Ensco CEO Carl Trowell said.

Rowan formed ARO Drilling with the state oil giant in 2016 to operate offshore drilling rigs in Saudi Arabia.

The total rig count of the combined company excludes Rowan's 50 percent interest in ARO Drilling.

(Reporting by Shanti S Nair; Editing by Shounak Dasgupta)

Categories: Offshore Finance Mergers & Acquisitions Offshore Energy Drilling Industry News Oil Rigs Jackup

Related Stories

Talos Sees 'Immaterial' Impact in Q4 from Gulf of Mexico Oil Spill

Floating Wind Leasing Round in the Celtic Sea

Fincantieri Set to Acquire Remazel Engineering

Current News

COP28 Draft Text Sets New Options on Fossil Fuel Phase Out

OPEC Chief Urges Members to Reject Any COP28 Deal that Targets Fossil Fuels

GATE Energy Awarded Woodside Trion FPU Commissioning

FTC Seeks Additional Data on Chevron-Hess Deal

Subscribe for OE Digital E‑News