Bermuda-based Transocean has announced a $5.8 billion all-stock deal to acquire rival Valaris, creating the world’s largest offshore drilling contractor. The merger brings together a combined fleet of 73 rigs, including 33 ultra-deepwater drillships, nine semi-submersibles, and 31 jack-up rigs.

Under the agreement, Transocean shareholders will own 53% of the new company, while Valaris shareholders will hold 47%. Valaris stockholders will receive 15.235 shares of Transocean for each Valaris share, giving the combined entity an enterprise value of about $17 billion.

The companies said the merger is expected to unlock over $200 million in cost synergies, strengthen cash flow, and support faster debt reduction. The combined company will also have a backlog of roughly $10 billion in orders.

“This combination positions us as a clear leader in offshore drilling, with top-tier assets, experienced teams, and unmatched customer support,” said Transocean CEO Keelan Adamson. Valaris CEO Anton Dibowitz added that the merger allows both firms to leverage each other’s deepwater and jack-up expertise, creating a company capable of operating in any offshore environment worldwide.

The new board will include nine current Transocean directors and two from Valaris, with Adamson set to lead the company. The deal has been approved by both boards and is expected to close in the second half of 2026, pending regulatory approval.

This acquisition marks a major consolidation in the offshore drilling sector, following years of mergers, bankruptcies, and asset roll-ups that have reduced the number of global drillers.