Transocean buys Valaris for $5.7 billion to expand global offshore rig fleet
Transocean, a provider of oilfield services, announced on Monday that it will acquire Valaris, a peer company, in a $5.8 billion all-stock deal. This acquisition will increase its exposure to deepwater, harsh environment and shallow water basins around the world.
Transocean shares dropped 1.9% to $5.28 while Valaris shares rose 20.7% to $75.43 during premarket trading.
Oilfield service providers are following energy producers in their pursuit of?deals that will help them navigate the operational and pricing pressures as customers reduce?spending for new wells and prioritise returns to investors.
The companies stated that the combined firm would have an enterprise worth of approximately $17 billion, and own a fleet of 73 drilling rigs including 33 ultra-deepwater drillships (UHD), nine semisubmersibles (Semi-Submersibles) and 31 modern jackups.
Valaris shares will be exchanged for 15.235 Transocean shares at a fixed ratio. According to a calculation, this values Valaris as $82.12 per share, which is a 31.6% increase over its last closing price.
Transocean said that, in addition to its ongoing cost-reduction programs, which are expected to reduce?expenditure to more than $250 millions through 2026; it has identified an additional $200 million of 'cost-saving benefits' arising from the Transocean transaction.
The companies have announced that Transocean would hold 53% and Valaris the remaining 47% of the combined company.
The companies anticipate that the deal will close in the second quarter of 2026. Reporting by Tanay dhumal from Bengaluru, Editing by Tasim zahid and Pooja desai
(source: Reuters)
