Transocean and Valaris announced on Monday that they have entered a definitive agreement to combine the two offshore drilling companies, with Transocean acquiring Valaris in an all-stock transaction valued at approximately $5.8 billion.
Under the agreement, Transocean shareholders are expected to hold about 53% of the combined company on a fully diluted basis, while Valaris shareholders will own the remaining 47%.
The pro forma enterprise value of the merged company is estimated at roughly $17 billion, with a market capitalization of $12.3 billion.
The combined company would operate a fleet of 73 rigs, including 33 ultra-deepwater drillships, nine semisubmersibles, and 31 modern jackups.
Both companies said the merger is intended to expand their global reach, diversify offshore capabilities, and enhance cash flow, including more than $200 million in identified cost synergies.
“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,” Transocean’s CEO Keelan Adamson said in a statement.
“The powerful combination is well-timed to capitalize on an emerging, multi-year offshore drilling upcycle. Investors and our global customers will benefit from our expanded fleet of best-in-class, high-specification rigs.”
Following completion, Adamson and Transocean’s management team will lead the combined company, with Jeremy Thigpen serving as Executive Chairman. The board will include nine current Transocean directors and two from Valaris.
The boards of directors of both companies have unanimously approved the merger, which is structured as a court-approved scheme of arrangement under Bermuda law. The transaction is expected to close in the second half of 2026.
Shares of Transocean traded 0.6% lower at about $5 on the news, while Valaris stock surged 24% to about $77.