BREAKING: Ensco, Rowan complete merger creating largest offshore drilling firm

Offshore drilling companies Ensco and Rowan have completed the previously announced merger deal, creating a new company named Ensco Rowan. Ensco Rowan is now the world’s largest offshore drilling company by fleet size.

The merger completion follows the satisfaction of the transaction’s closing conditions including approval by each company’s shareholders and sanction by the UK Court of the scheme of arrangement implementing the transaction.

Under the terms of the transaction agreement, Rowan shareholders received 2.750 Ensco shares for each Rowan share they owned immediately prior to closing.

Legacy Ensco and Rowan shareholders own approximately 55% and 45%, respectively, of the outstanding shares of EnscoRowan.

Following the closing of the transaction, ordinary shares of the combined company have been consolidated through a 4:1 reverse stock split, resulting in approximately 197 million ordinary shares outstanding.

Tom Burke, EnscoRowan’s President and Chief Executive Officer, said, “The successful completion of our merger further enhances our market leadership with a fleet of high-specification floaters and jack-ups 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.”

Carl Trowell, EnscoRowan’s Executive Chairman, stated, “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. We are excited to move forward together as a combined company.”

The merged company is now the world largest offshore drilling contractor by fleet size. It was previously reported that the combined fleet of the two companies would consist of 28 floating rigs (semi-subs and drillships) and 54 jack-ups. The number includes two drillships and one jack-up rig under construction and does not include rigs which are part of Rowan’s ARO joint venture in Saudi Arabia.

Offshore Energy Today Staff

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