Transocean, valued at approximately $5.8 billion, is nearing the purchase of Valaris. This deal, currently in the final stages of review, is considered a key step towards finalizing this process with the approval from the U.S. antitrust authority.
Details of the Deal and Its Terms
According to available information, the antitrust authority of the U.S. Department of Justice has completed its investigation regarding this business combination under the Hart-Scott-Rodino Antitrust Improvements Act. This approval removes one of the most significant legal conditions that existed over this business combination.
Transocean and Valaris are expected to finalize this deal in the fourth quarter of this year, provided that the remaining conditions are resolved or waived. According to an agreement signed in early February this year, Transocean will acquire all shares of Valaris, and Valaris shareholders will receive 15.235 shares of Transocean for each share they hold.
Implications of the Merger and Future of the Company
This business combination will allow Transocean to hold approximately 53% of the new company, while Valaris shareholders will own about 47% of the combined entity. With this deal, the total value of the new company is estimated to be close to $17 billion, making this merger one of the largest offshore drilling contractors.
The combined fleet of this company includes 73 rigs, consisting of 33 ultra-deepwater rigs, 9 semi-submersible rigs, and 31 jack-up rigs. The senior leadership of Transocean is expected to remain in their positions after the deal is finalized, with Keelan Adamson continuing as CEO. Meanwhile, the combined company will be registered in Switzerland, with Houston designated as its main administrative base.
This deal is considered one of the largest offshore drilling contractor combinations in recent years, following a wave of mergers and acquisitions in this sector, including Noble's acquisitions of Pacific Drilling, Maersk Drilling, and Diamond Offshore.
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