Transocean to Acquire Valaris in $5.8 Billion Deal to Create Offshore Drilling Giant

Leading offshore drilling service providers Transocean Ltd. and Valaris Limited have announced a definitive agreement to combine in an all-stock transaction. The deal, which values Valaris at approximately USD 5.8 billion, will create an industry leader with a combined enterprise value of around USD 17 billion.

The transaction will create the world’s highest-specification offshore drilling fleet, with 73 rigs capable of operating across all water depths. The companies have identified over USD 200 million in annual cost synergies, which, combined with an industry-leading backlog of approximately USD 10 billion, is expected to enhance cash flow and accelerate debt reduction for the new entity.

Upon completion, Transocean shareholders will own approximately 53% of the combined company, with Valaris shareholders owning the remaining 47%. The new entity will continue to be led by Transocean CEO Keelan Adamson and will remain incorporated in Switzerland. The transaction is expected to close in the second half of 2026, subject to regulatory and shareholder approvals.

Valaris was advised on the Swiss law aspects of the transaction by Lenz & Staehelin, alongside lead counsel Skadden, Arps, Slate, Meagher & Flom LLP and Conyers Dill & Pearman Limited (on Bermuda law aspects). The Lenz & Staehelin team was led by Jacques Iffland (Corporate) and Floran Ponce (Tax) and included Maximilien de Ridder, Caroline Kopp, Alexandra Vraca, and Kimberly Hundt.

Transocean was advised by Hogan Lovells and Appleby, with Homburger advising on Swiss law matters. The Homburger team was led by David Oser, Micha Fankhauser, and Kaiyan Yeo (all Corporate / M&A), as well as Reto Heuberger (Tax).