Vantage Drilling and Eldorado Drilling have agreed to merge in a $257.6 million cash transaction, extending the consolidation trend in the offshore drilling market.
Under the agreement, Eldorado Drilling will acquire Vantage Drilling through a statutory merger under Bermuda law. Vantage Drilling will remain the surviving company and become a wholly owned subsidiary of Eldorado Drilling after completion. The company will continue under the name Vantage Drilling International.
The merger agreement was signed on 29 May 2026 by Vantage Drilling, Eldorado Drilling, and Eldorado Drilling Merger Sub. Vantage Drilling shareholders are set to receive $19 per share in cash, representing an equity value of about $257.6 million.
The board of Vantage Drilling has unanimously approved the transaction and recommended shareholder approval. A shareholder meeting is expected on 18 June 2026.
The deal is subject to customary closing conditions, including shareholder approval and the absence of any legal restriction in a key jurisdiction that would prevent completion. Closing is expected at the beginning of the third quarter of 2026.
Eldorado Drilling’s principal shareholder has committed $125 million in equity funding for the transaction. This consists of $64.5 million in cash and $60.5 million through conversion of an existing shareholder note into equity. The same shareholder is also the guarantor under the merger agreement.
Vantage Drilling chief executive Ihab Toma said the transaction would support investment in people and assets and help the company pursue opportunities across regions.
Eldorado Drilling chairman Bernie Wolford said the merger would combine Vantage Drilling’s global operating capabilities and long-term customer relationships with Eldorado Drilling’s investment program.
The announcement follows Transocean’s agreement to acquire Valaris in an all-stock transaction valued at about $5.8 billion. That deal is expected to create a combined fleet of 73 rigs, including 33 ultra-deepwater drillships, nine semi-submersibles, and 31 modern jack-ups.
