Transocean has signed a definitive agreement to acquire Valaris Limited in an all-stock transaction valued at about $5.8 billion. The companies expect the merger to close in the second half of 2026, subject to regulatory clearances, customary conditions, and approvals by shareholders of both firms.
Based on closing prices on 6 February 2026, the structure implies a pro forma enterprise value of roughly $17 billion. On a fully diluted basis after completion, Transocean shareholders are expected to own about 53% of the merged group, while Valaris Limited shareholders would hold about 47%.
The transaction is positioned to increase cash flow visibility through a combined backlog of around $10 billion. Alongside Transocean’s ongoing cost-reduction program—expected to deliver more than $250 million in aggregate savings through 2026—the companies said they have identified incremental deal-related synergies of over $200 million to further strengthen financial flexibility.
Keelan Adamson, President and Chief Executive Officer of Transocean, said the combination is timed to benefit from an emerging multi-year offshore drilling upcycle. He added that identified synergies exceeding $200 million would support continued efforts to safely lower costs. Adamson also stated that pro forma cash generation is expected to accelerate debt reduction, targeting an expected leverage ratio of about 1.5x within 24 months after closing.
Operationally, the merger would create a contractor with a diversified offshore fleet of 73 rigs: 33 ultra-deepwater drillships, nine semisubmersibles, and 31 modern jackups. The companies said the expanded portfolio will support customers across deepwater, harsh environment, and shallow-water basins worldwide.
Anton Dibowitz, Chief Executive Officer of Valaris Limited, said the transaction will pair Transocean’s high-specification deepwater assets with Valaris Limited capabilities and bring jackup expertise into Transocean’s business. He said the combined company would be able to operate rigs across any water depth and offshore environment globally.
Leadership and governance have been set out, with Adamson continuing as CEO and Jeremy Thigpen serving as Executive Chairman. The board will include nine current Transocean directors and two current Valaris Limited directors. Transocean will remain incorporated in Switzerland, and its primary administrative office will stay in Houston.
Under the agreed terms, Valaris Limited shareholders will receive a fixed exchange ratio of 15.235 shares of Transocean stock for each Valaris Limited common share.
Both boards unanimously approved the deal. The parties also entered shareholder support agreements with Perestroika AS—owner of about 9% of Transocean shares outstanding—and with Famatown Finance Limited and Oak Hill Advisors, which together own about 18% of Valaris Limited shares outstanding, committing to vote in favor of the transaction.
