This week starts with huge news for the offshore drilling sector: Ensco (ESV) merges with Rowan (RDC). The companies decided to combine, subject to shareholder vote. Under the terms of the agreement, Rowan shareholders will receive 2.215 Ensco shares for each Rowan share that they own. When the transaction is closed, Ensco shareholders will own 60.5% of the combined company while Rowan shareholders will own 39.5% of the combined company. Rowan CEO Tom Burke will be the CEO of the combined company while Ensco CEO Carl Trowell will become Executive Chairman. Here are my thoughts on the deal (note that I'm writing these words before the conference call on the topic of the merger was held).

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