Transocean Ltd and Valaris Limited announced, in a joint statement, the signing of a definitive agreement to combine the two companies.
Under the agreement, Transocean will acquire Valaris in an all-stock transaction valued at approximately $5.8 billion, the statement noted. The shareholding percentages of the combined company, on a fully diluted basis, will be approximately 53 percent for Transocean and 47 percent for Valaris, according to the statement.
Valaris shareholders will receive a fixed exchange ratio of 15.235 shares of Transocean stock for each common share of Valaris under the terms of the all-stock transaction, the statement highlighted. Based on the closing prices of Transocean and Valaris on February 6, the transaction implies a combined enterprise value of approximately $17 billion, the statement noted
The transaction was unanimously approved by the boards of directors of both companies and is expected to close in the second half of 2026, subject to regulatory approvals and customary closing conditions, and approvals by the shareholders of each company, the joint statement said.
The statement outlined that the deal “creates an industry leader with a diversified offshore fleet of 73 rigs, including 33 ultra-deepwater drillships, nine semisubmersibles and 31 modern jackups, to meet emerging growth opportunities”.
It also “expands reach and customer access in world’s most attractive offshore basins” and “unlocks more than $200 million in identified cost synergies”, the statement highlighted, adding that it “increases cash flow, accelerates deleveraging, and strengthens financial flexibility”Keelan Adamson, Transocean President and Chief Executive Officer, said in the statement, “this transaction creates a very attractive investment in the offshore drilling industry, differentiated by the best fleet, proven people, leading technologies, and unequalled customer service”.