Transocean’s proposed $5.8 billion all-stock combination with Valaris may be moving closer to US antitrust clearance, following a report that the Department of Justice could complete its review without requiring divestitures.
Seeking Alpha, citing a 21 September report from M&A intelligence service CTFN, said the DOJ is expected to clear the transaction earlier than anticipated and without asset sales. No formal DOJ decision has been announced, making the report an indication of the expected regulatory outcome rather than confirmation of approval.
Following the report, the transaction’s deal spread narrowed to $1.14 from $2.17 on the previous Friday, according to Seeking Alpha. The spread represents the difference between Valaris’ market price and the value implied by the agreed exchange ratio.
Transocean and Valaris announced the combination in February 2026. Under the agreement, Valaris shareholders would receive 15.235 Transocean shares for each Valaris share.
On a fully diluted basis, existing Transocean shareholders are expected to own about 53% of the combined company, while Valaris shareholders would hold approximately 47%.
The companies have estimated the combined enterprise value at around $17 billion. The combined fleet would total 73 rigs, comprising 33 ultra-deepwater drillships, nine semisubmersibles and 31 jack-ups.
The companies also expect the combined business to have approximately $10 billion of backlog and have identified more than $200 million in potential cost synergies.
Several regulatory steps have already been completed. The Committee on Foreign Investment in the United States cleared the transaction on 29 June 2026, while Australia’s ACCC has also approved the combination.
For the US antitrust review, the companies submitted Hart-Scott-Rodino notifications in March. The DOJ issued a second request for information in May, and both companies later certified compliance with the request. Earlier CTFN reporting indicated that Transocean completed its certification in late August. The companies had also entered into a timing agreement with the DOJ.
Brazilian antitrust approval also remains outstanding. Brazil’s competition authority, CADE, opened a formal review of the transaction on 7 August.
The latest coverage describes CADE approval as the final regulatory clearance still required for the transaction.
Transocean and Valaris continue to target completion in the second half of 2026, subject to remaining regulatory and shareholder conditions. The latest report concerning the DOJ does not represent an official US government clearance decision.
