Big Move in Offshore Rigs: Transocean to Buy Valaris

Transocean is set to acquire the offshore drilling firm Valaris for about $5. 8 billion, a deal that will expand the combined company’s fleet to 73 rigs worldwide. The purchase comes at a time when oilfield services are looking for ways to cope with tighter budgets and higher operating costs. The transaction is structured as a stock swap. For every Valaris share, shareholders will receive 15. 235 shares of Transocean stock. This exchange values Valaris at roughly $82 per share, a premium over its last closing price. After the deal, Transocean will own 53 % of the new entity while Valaris shareholders will hold the remaining 47 %.Transocean’s chief executive said the merger will help cut debt and improve cash flow. The company currently carries about $4. 85 billion in long‑term debt and expects its leverage ratio to fall close to 1. 5 times within two years after closing. The combined fleet will include 33 ultra‑deepwater drillships, nine semisubmersibles and 31 modern jackups, giving the new firm a broader reach in offshore drilling markets. Beyond cost savings already planned by both companies, Transocean estimates the deal will deliver an additional $200 million in efficiencies. Together with a broader cost‑cutting program that aims to reduce spending by over $250 million through 2026, the new company expects stronger earnings and higher returns for investors. The acquisition is slated to finish in the second half of 2026, after regulatory approvals and shareholder votes. The move signals a trend among service providers to consolidate in order to stay competitive as energy producers tighten spending on new wells.