UK driller Ensco and its U.S. rival Atwood Oceanics have announced early termination of HSR waiting period related to a merger that will make Ensco the world’s largest jack-up operator.
According to a joint press release by the two companies on Thursday, they have have received notice from the Department of Justice and the Federal Trade Commission granting early termination of the waiting period under the U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, with respect to the proposed merger previously announced on May 30,2017, according to which Ensco will acquire Atwood in a stock transaction.
Accordingly, the merger closing condition with respect to the expiration or termination of the waiting period under the HSR Act has been satisfied.
To remind, it was agreed that under the proposed merger, Atwood shareholders would receive 1.60 shares of Ensco for each share of Atwood common stock for a total value of $10.72 per Atwood share based on Ensco’s closing share price of $6.70 on May 26. This represented a premium of approximately 33% to Atwood’s closing price on the same date.
Completion of the merger remains subject to satisfaction or waiver of certain other conditions, including approval by the shareholders of both Ensco and Atwood.