Transocean will acquire Valaris for US$5.8 billion (A$8.219 billion) in stock, combining two major drilling contractors as the offshore drilling industry expands.
The combined company would have an enterprise value of around $17 billion and a market capitalisation of $12.3 billion, according to Transocean and Valaris. Its fleet would include 73 oil rigs.
“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,” said Transocean CEO Keelan Adamson.
“The powerful combination is well-timed to capitalise 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.”
The companies’ combined backlog is around $10 billion. The acquisition comes amid a surge in offshore drilling activity, with the global market valued at $43.78 billion in 2025 and forecast to reach $87.50 billion by 2034.
Valaris investors will receive 15.235 shares in Transocean for each Valaris share. The acquisition is set to close in 2026’s second half.
The transaction will aid in reducing Transocean’s debt, Adamson said, as it expects more than $200 million in cost synergies by 2028. The company had $4.85 billion in long-term debt as of 30 September.
Transocean has separately been pursuing a cost-reduction program, which it has said will lower costs by more than $250 million through 2026.
Transocean (NYSE: RIG) shares closed 5.9% higher at $5.71, and climbed a further 0.2% after-hours. Its market capitalisation is $6.23 billion.
Valaris (NYSE: VAL) shares surged 34.3% to close at $83.82, but dipped 1.2% in after-hours trading. Its market capitalisation is $5.76 billion.
