Transocean to acquire Valaris in $5.8B all-stock deal

Transocean (NYSE:RIG) and Valaris (NYSE:VAL) announced connected Monday that they person entered a definitive statement to harvester the 2 offshore drilling companies, with Transocean acquiring Valaris successful an all-stock transaction valued astatine astir $5.8 billion.

Under the agreement, Transocean shareholders are expected to clasp astir 53% of the combined institution connected a afloat diluted basis, portion Valaris shareholders volition ain the remaining 47%.

The pro forma endeavor worth of the merged institution is estimated astatine astir $17 billion, with a marketplace capitalization of $12.3 billion.

The combined institution would run a fleet of 73 rigs, including 33 ultra-deepwater drillships, 9 semisubmersibles, and 31 modern jackups.

Both companies said the merger is intended to grow their planetary reach, diversify offshore capabilities, and heighten currency flow, including much than $200 cardinal successful identified outgo synergies.

“This transaction creates a precise charismatic concern successful the offshore drilling industry, differentiated by the champion fleet, proven people, starring technologies, and unequalled lawsuit service,” Transocean’s CEO Keelan Adamson said successful a statement.

“The almighty operation is well-timed to capitalize connected an emerging, multi-year offshore drilling upcycle. Investors and our planetary customers volition payment from our expanded fleet of best-in-class, high-specification rigs.”

Following completion, Adamson and Transocean’s absorption squad volition pb the combined company, with Jeremy Thigpen serving arsenic Executive Chairman. The committee volition see 9 existent Transocean directors and 2 from Valaris.

The boards of directors of some companies person unanimously approved the merger, which is structured arsenic a court-approved strategy of statement nether Bermuda law. The transaction is expected to adjacent successful the 2nd fractional of 2026.

Shares of Transocean traded 0.6% little astatine astir $5 connected the news, portion Valaris banal surged 24% to astir $77.