Transocean-Valaris Tie-Up to Create $17B Offshore Drilling Major with 73 Rigs

Offshore drilling contractor Transocean has agreed to acquire Valaris in an all-stock transaction valued at about $5.8 billion, creating one of the world’s largest offshore drilling contractors with a fleet of 73 drilling rigs.

The combined company will have an enterprise value of roughly $17 billion, with Transocean shareholders expected to own about 53% of the merged entity and Valaris shareholders the remaining 47% on a fully diluted basis.

The transaction will combine fleets to form a portfolio of 73 offshore rigs, including 33 ultra-deepwater drillships, nine semisubmersibles and 31 modern jack-ups, expanding the companies’ presence across deepwater and shallow-water basins globally.

The combined company is expected to have an offshore rig backlog of about $10 billion and more than $200 million in identified transaction-related cost synergies. Transocean’s management team will lead the merged company, with the group remaining incorporated in Switzerland and maintaining its primary administrative office in Houston.

The transaction, approved by the boards of both companies, is expected to close in the second half of 2026, subject to regulatory approvals, customary closing conditions and shareholder approvals.

“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.

“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. We have identified more than $200 million in cost synergies that will complement our ongoing efforts to safely lower costs,” said Keelan Adamson, President and Chief Executive Officer of Transocean.

“By combining with Transocean, we will create a new industry leader for the benefit of our shareholders, customers and employees. We look forward to complementing Transocean’s high-specification deepwater assets with our own, while returning world class jack-up expertise to Transocean’s business, creating a combined company that is capable of operating any rig at any water depth in any offshore environment around the world,” added Anton Dibowitz, Chief Executive Officer of Valaris.