ENSCO and Rowan Companies announce $2.38 billion merger
Through an all-stock transaction, ENSCO Plc will acquire Rowan Companies. The announcement of the merger of these Houston-based companies came on October 9, 2018. This $2.38 billion deal benefits shareholders.
Rowan shareholders will receive 2.215 Ensco shares for each Rowan share. Combined, the companies will form one of the largest offshore drilling fleets in the world, with over 80 rigs distributed globally. After the merger, ENSCO will have the second largest floating rig fleet in the world.
How will the ENSCO and Rowan merger affect employees?
All of this news makes shareholders, investors, and executives happy. How it will affect Rowan and ENSCO’s employees is another story. Employees tend to get the short end of the deal in mergers and acquisitions. As of right now, employees have questions than answers, including:
What happens to their jobs? Typically, downsizing the workforce is the next step in a merger. Will that happen here? If so, who is going to keep their job and who is going to get a pink slip? Employees deserve answers to these questions now.
What will happen to their health insurance? Will plans get more expensive? Will they lose coverage? Will it be better?
What will happen to pensions? Will retired ENSCO or Rowan workers have a say in what happens to their pensions? Will their pensions be protected?
Will their certifications transfer over? If a Rowan worker is kept on to work for ENSCO, will all their certifications count? Will they have to get recertified?
How will the merger affect pay scales, promotion schedules, and more?
How will the merger affect training systems, schedules, and safety rules? What happens if a Rowan employee doesn’t have the same training as ENSCO crewmembers and it causes a safety issue? Will everyone have to be retrained under a new system? Will that affect productivity?
What happens to work assignments? For workers who don’t get laid off, will their work schedules stay the same? How will the blending of the workforces occur?
These questions, and more, are running through the heads of every ENSCO and Rowan employee. Employees always suffer the consequences of corporate decisions. While this merger will be beneficial for ENSCO and Rowan’s clients, it may not be so beneficial for ENSCO and Rowan employees.
ENSCO’s acquisition of Rowan will create second largest floating rig fleet in the world
After acquiring Rowan, ENSCO will have 82 rigs spanning six continents. 90% of the fleet will consist of generation VI and VII assets, including:
28 floating rigs (drillships and semisubmersibles)
Within this fleet are 25 ultra-deepwater rigs capable of drilling in depths greater than 7,500 feet. 11 of these ultra-deepwater rigs are seventh generation rigs.
54 jack-up rigs, including 38 units equipped with many of the advanced features commonly requested by clients with shallow-water drilling programs. These features include increased leg length, expanded cantilever reach and greater hoisting capacity. Among the fleet of jackup rigs are seven ultra-harsh environment units and nine additional modern harsh environment rigs.
Press releases boast of the benefits this fleet will bring to shareholders, including new drilling locations and a more versatile fleet, all of which translate to money in shareholders’ pockets. They do not address the concerns of the employees of these two companies. At the end of 2017, ENSCO employed 4,611 people worldwide. Rowan employed 2,800 people. This is a massive workforce that deserves answers about their futures and their careers. Answers that put their best interests first, not the interests of the shareholders.
We have helped offshore workers employed by both ENSCO and Rowan over the years. In each case, the dedication and loyalty of these workers stood out to us. These workers deserve to be given a seat at the table for these discussions about their futures. They deserve to get the best outcome possible. We hope that happens.
Find out more about how we have helped offshore workers injured on board Rowan and ENSCO rigs. While these companies invest in training and a safety culture, injuries happen. We take the stress out of recovering from an offshore injury. Find out how we can help you get the medical care you need and the compensation you deserve so you can get back to work. To talk to our attorneys now about your offshore work injury, call now at 877-724-7800 or fill out a contact form.