Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Ensco To Buy Pride International For $7.3 Billion

Ensco Plc will buy its rival Pride International Inc for about $7.3 billion. Ensco will purchase shares of Pride at $41.60 apiece, a premium of 21 percent to Friday's closing price. Pride stockholders will receive 0.4778 newly issued shares of Ensco plus $15.60 in cash for each share of Pride common stock. The deal will be financed through a combination of existing cash on the balance sheet and newly issued Ensco shares and debt. Total cash paid to Pride shareholders will be about $2.8 billion. The deal will give Ensco greater leverage to the Brazilian market, one of the fastest growing basins in the world, he said. The combined company would likely see annual expense savings of $50 million from 2012. The deal is expected to be accretive to Ensco's earnings per share in 2011 and 2012.