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Ensco Plc
ESV, + 1.56%
and Rowan Companies Plc
DRC + 1.40%
On Monday, they agreed to regroup in a contract consisting entirely of shares worth $ 12 billion. Under the terms of the agreement, Rowan shareholders will receive 2,215 shares of Ensco for each Rowan share. The combined company expects annual pre-tax synergies of approximately $ 150 million. The agreement is expected to increase cash flow per share in 2020 and be finalized in the first half of 2019. The new company will be a major player in offshore drilling with a diversified customer base including most major offshore reserve holders, the companies said. in a joint statement. Rowan, Chief Executive Officer, Tom Burke, will be the CEO of the new company. "By merging our high-quality drilling rig fleets and our infrastructure covering the world's most prolific offshore basins, we are increasing our scale while maintaining our common goal of high specification assets, including ships." ultra-deep drilling and versatile semi-submersibles, as well as harsh environments and modern jack-ups, "Burke said in a statement. Ensco shares were up 2.7% pre-market, while Rowan shares rose 2.8%. S & P 500
SPX, -0.55%
futures contracts were down 0.3%.
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