Case Study

Collin Earle

Professor Dr. Juyan Zhang

Comm. 3563

14 August 2013

Case Study: “Ensco PLC/Pride an International Merger”

Ensco International: “A Major Decree”

Abstract

Ensco International is a multinational corporation that specializes in the offshore drilling of gas and oil. Ensco’s main offices are held in Houston, Texas and in London, England. It is the world's second-largest offshore oil and gas well drilling company, and as of 2011 controls 49 offshore jack-ups, seven drill ships and 20 semi-submersible drilling rigs. Ensco’s customers include national and international oil companies. Ensco has over 7,000 employees and annual revenue of approximately $2.3 billion. Ensco is publicly traded on the New York Stock Exchange with the abbreviation ESV. In the year 2009 Ensco International announced that it would open up a new headquarters in London. Ensco also announced that they would remain, mostly an American Company and allowed for only a percentage of their workforce to work out of their London office. In February 2011, Ensco agreed to acquire its rival-Pride International-for $7.3 billion, this deal was finalized on May 31, 2011. This merger provided Ensco with access to the lucrative Brazil and West African drilling markets. Ensco also gained diversified assets from Pride, such as jack-up rigs to drill ships and semi-submersible rigs. Soon after Ensco’s merger the company moved their main offices in the United Sates from Dallas, Texas to Houston, Texas. As of December 31, 2011, Enesco owned and operated an offshore drilling rig fleet of 77 rigs, including rigs under construction. As of December 31, 2011 Enesco’s property assets include: 7 drill ships, 13 dynamically positioned semisubmersible rigs, 7 semisubmersible rigs, 49 jack up rigs and 1 barge rig.

Introduction

Ensco’s and Pride international merger will accomplish a cash and stock transaction that is valued at $41.60 per share, which was agreed upon by...