Saudi competition watchdog nods for Ensco-Rowan merger
Offshore drillers Ensco and Rowan Companies have received clearance from the General Authority for Competition in the Kingdom of Saudi Arabia for their pending combination.
Both Ensco and Rowan informed in separate statements on Wednesday that they had received clearance for the merger from the General Authority for Competition in the Kingdom of Saudi Arabia.
As disclosed on February 21, 2019, shareholders of both Ensco and Rowan voted to approve the pending all-stock transaction under which Rowan shareholders will receive 2.750 Ensco shares for each Rowan share they own.
Completion of the transaction, which is expected to occur in April, remains subject to court approval pursuant to a UK court-sanctioned scheme of arrangement and other customary closing conditions, the two companies said.
Ensco and Rowan Companies have already received approval from the UK competition authorities for their imminent merger.
Once completed, the merged company will become the world largest offshore drilling contractor by fleet size. 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.