UK-based Ensco and Rowan have completed their previously announced merger aimed at creating a $12bn offshore drilling company called EnscoRowan.
Image: EnscoRowan is a $12bn worth offshore drilling company. Photo: courtesy of Anita starzycka/Pixabay.
The merger to create EnscoRowan was completed after satisfying the closing conditions of the deal announced in October 2018, which included approval from shareholders of both the companies and a UK court approval among others.
Last month, the merger was approved by the General Authority for Competition in Saudi Arabia.
EnscoRowan, which will be headquartered in London, will have a significant footprint in Houston, Texas, and will trade on the New York Stock Exchange.
As per the revised terms of the all-stock transaction, as announced in January 2019, shareholders of the US-based Rowan were issued 2.750 Ensco shares in exchange of each of their shares.
In the enlarged company, the original Ensco shareholders will own about 55% while the remaining stake of around 45% will be held by the original Rowan shareholders.
EnscoRowan president and CEO Tom Burke said: “The successful completion of our merger further enhances our market leadership with a fleet of high-specification floaters and jackups and diverse customer base.
“Our growing geographic presence, technologically-advanced drilling rigs and talented employees position us exceptionally well to meet increasing and evolving customer demand. I look forward to executing on the significant long-term growth opportunities we believe we can capture from our combined strengths as the offshore sector recovers.”
EnscoRowan will have a fleet size of 82 rigs and an operating presence spanning six continents. The offshore driller’s rig fleet comprises 28 floaters and 54 jack-ups that can deliver a wide range of drilling services to the clients’ base of its founding companies.
Within its fleet of 28 floating rigs, EnscoRowan has 25 ultra-deepwater rigs that can drill in water depths of more than 7,500ft.
EnscoRowan executive chairman Carl Trowell said: “The combination of Ensco and Rowan creates an industry-leading offshore driller across all water depths, establishing a stronger company capable of thriving throughout the market cycles.
“Our increased scale, diversification and financial strength will provide significant advantages to better serve our customers and unlock long-term value for our shareholders.”