Ensco, the UK energy company, said on Monday that it would buy Pride International, in a $7.3bn cash and stock deal that would create the world’s second-largest offshore driller by number of customers.
Ensco will pay $41.60 a share for Pride. The deal represents a 21 per cent premium to Pride’s closing price on Friday and comes as the drilling industry has been under pressure in the wake of the BP oil spill in the Gulf of Mexico last year.
Shareholders in the Texas-based Pride will receive 0.4778 newly-issued shares of Ensco plus $15.60 in cash for each share of Pride common stock. Pride shareholders will receive a total of $2.8bn in cash.