Transocean Ltd has agreed to acquire Valaris Ltd in an all-stock transaction valued at about $5.8 billion, a deal structured under Bermuda law that will create one of the world’s largest offshore drilling companies.

The companies said the combination will be implemented through a court-approved scheme of arrangement under the Bermuda Companies Act 1981.

Valaris is a Bermudian-incorporated company, while Transocean has a major administrative presence in Hamilton through several subsidiaries, alongside its Swiss incorporation.

The combined group will have an enterprise value of roughly $17 billion and a pro forma market capitalisation of about $12.3 billion. On a fully diluted basis, Transocean shareholders will own approximately 53 per cent of the merged company, with Valaris shareholders holding the remaining 47 per cent.

Together, the companies will operate a diversified fleet of 73 offshore rigs, including 33 ultra-deepwater drillships, nine semisubmersibles and 31 modern jack-ups. The enlarged group is expected to benefit from more than $200 million in identified cost synergies, in addition to Transocean’s existing cost-reduction programme.

Keelan Adamson, Transocean president and chief executive, said the transaction was “well timed to capitalise on an emerging, multiyear offshore drilling upcycle”.

The deal is expected to close in the second half of 2026, subject to regulatory and shareholder approvals.