Ensco & Rowan Combination to Result in $12b Enterprise Value

Ensco & Rowan Companies’ agreement to merge in an all-stock transaction has been unanimously approved by each company’s board, while the Saudi Aramco partner to the ARO Drilling joint venture has consented to the deal.

• Under the terms of the transaction, Rowan shareholders will get 2.215 Ensco shares for each Rowan share and Ensco and Rowan shareholders will own about 60.5% & 39.5% of the combined entity, respectively
• The combined company, estimated to have an enterprise value of $12 billion, expects to realize annual pretax expense synergies of about $150 million, more than 75% of which are expected to be ...