Ensco and Rowan drill down massive merger

A merger deal between offshore drilling giants Rowan Cos. PLC and Ensco PLC is now in place, creating a new company consisting of 82 rigs operating across all continents, and is valued at around $12 billion.

The joined fleet consists of 28 floating units, 54 jack ups and currently under construction, two drill ships. Twenty-five of those rigs are capable of deep sea drilling, more than 7,500ft deep. The merger fleet does not include ARO Drilling rigs, which is an existing partnership between Saudi Aramco and Rowan that was signed in October 2017.

The merger agreement terms stipulate that Ensco stockholders are entitled to 60.5% ownership of the newly created company, whilst Rowan stockholders get the rest. Tom Burke of Rowan will serve as president and chief executive officer of the newly formed company. Ensco’s current CEO and president, Carl Trowell, will be appointed executive chairman.

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