Oil Driller Ensco to Buy Rival Pride

Ensco Plc will buy its rival Pride International Inc for about $7.3 billion in a deal that would create the world''s second-largest offshore oil and gas driller, according to the companies, reports Reuters. The deal sets the purchase price for Pride''s shares at $41.60 apiece, a premium of 21 percent to Friday''s closing price. The deal would lift the combined company past Noble Corp to be the global No. 2 offshore driller behind Transocean Ltd. The combined company, which would be headquartered in Britain, would likely see annual expense savings of $50 million from 2012. 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.