Offshore driller Ensco has announced plans to buy Rowan Cos, in an all-stock transaction, creating a combined company with an enterprise value of $12 billion, according to an official statement.
Rowan Cos formed ARO Drilling with Saudi Aramco in 2016 to operate offshore drilling rigs in Saudi Arabia. Aramco has agreed to the merger, the statement said.
Under the terms of the transaction agreement, Rowan shareholders will receive 2.215 Ensco shares for each Rowan share. Following the closing of the deal, Ensco and Rowan shareholders will own approximately 60.5 percent and 39.5 percent respectively.
The deal will create an offshore driller with 82 rigs spanning six continents.
Ensco president and CEO, Carl Trowell, said: “Through this combination, Ensco shareholders will benefit from Rowan’s joint venture with Saudi Aramco.”
There are no financing conditions for this transaction.
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