Transocean-Valaris $5.8 billion deal combines 73 offshore drilling rigs
Key Facts
Transocean disclosed an agreement to acquire Valaris in a deal valued at about $5.8 billion, issuing 15.235 of its shares for each Valaris share. The deal combines the companies’ fleets into a company with 73 offshore drilling rigs, according to deal materials filed with the U.S. Securities and Exchange Commission. Those materials put the combined backlog at about $10 billion and identified deal-related cost savings of more than $200 million. The resulting company is presented as a leading company with a diverse fleet, without describing it as the world’s largest. Completion would expand Transocean’s asset and contract base, subject to the remaining conditions being met.
The consideration structure makes the deal stock-based, with Valaris shareholders receiving Transocean shares at the announced exchange ratio. After completion, Transocean shareholders are expected to own about 53% of the combined company, compared with about 47% for Valaris shareholders, according to Transocean’s filing with the SEC. These proportions give shareholders of both companies stakes in the combined entity rather than paying Valaris shareholders entirely in cash. They also mean ownership of the new company will be divided between the two existing shareholder bases, according to estimates in the filing. These stakes remain contingent on completion of the deal on the announced terms.
The deal’s operational rationale also rests on forecasts for offshore activity, rather than realized results. Deal materials forecast an increase of about 10% in offshore upstream capital spending during 2024–2027. They also forecast an increase of more than 150% in deepwater project adoption by 2027. The company cited these estimates from data sources referenced in its materials, making them forecasts tied to a defined time horizon. In this context, the larger fleet and disclosed backlog could position the company to benefit from expected activity, while realizing that opportunity depends on projects and spending proceeding as forecast.
Transocean’s financial plan includes a target of reducing leverage to about 1.5 times within 24 months of completion. Management said in the joint filing that the company “may be able to achieve a leverage ratio of approximately 1.5 times within 24 months after closing.” The target relates to the post-merger period and therefore depends on the deal closing and market conditions. Alongside cost savings of more than $200 million, reducing leverage is one of the deal’s stated financial objectives. The filing presents this level as an expected post-completion target, not a current result.
Approval proceedings advanced after the companies received notice from the U.S. Department of Justice on September 30, 2026, that it had closed its antitrust investigation and the waiting period had ended. The end of that review does not mean the deal is complete; remaining conditions include Valaris shareholder approval of the transaction resolution and Transocean shareholder approval of the share issuance resolutions. The companies expect to complete the deal in the fourth quarter of 2026, according to Valaris’ filing with the SEC. Valaris said in its results published on August 5 that it still targeted closing in the same quarter. The expected timetable remains subject to the outstanding approvals and other closing conditions.
At the latest closes available in the submitted data, Transocean shares ended trading at $6.71 on October 28, 2026, while Valaris shares closed at $101.63. EL7 data lists the prices as separate daily closes. The figures do not include a percentage change or indicate that they represent a market response to the deal. Valaris’ recent operating performance is reflected in its second-quarter results, published on August 5: operating revenues of $539 million and net income of $47 million. The next expected development is the completion of approvals, followed by the anticipated closing in the fourth quarter of 2026.