NEW YORK, Feb 10, 2026, 14:31 ET — Regular session
- Valaris dropped roughly 9% in afternoon trading, giving back much of Monday’s gains that followed the deal news.
- Valaris is moving in step with Transocean, thanks to the fixed stock-swap structure.
- Valaris is set to release its quarterly results Feb. 19, marking the next catalyst.
Valaris Ltd dropped 8.6% to $76.64 on Tuesday, trimming gains from its recent merger surge. Transocean, the potential acquirer, lost 8.1%, finishing at $5.25.
This makes a difference right now—since it’s a stock swap, not a cash buyout. The fixed exchange ratio means Valaris shares are increasingly behaving like a stand-in for Transocean. What matters next: will the deal close, and when?
The exchange ratio values Valaris at about $80 a share at these prices. The stock’s trading nearly 4% under that level. That difference tends to signal how the market handicaps both the likelihood of the deal closing and how long it could take.
Transocean unveiled plans Monday to acquire Valaris in an all-stock deal worth around $5.8 billion, a move that’s set to create a combined offshore drilling giant with an enterprise value near $17 billion and a 73-rig fleet. “We know that our debt level negatively impacts our equity value. This transaction addresses that,” CEO Keelan Adamson told investors, adding that leverage might drop to about 1.5 times within two years post-closing. 1
Valaris shareholders will get 15.235 Transocean shares for every Valaris share they own, the companies said. The merger is slated to wrap up in the second half of 2026, pending shareholder and regulatory sign-off. “Create a new industry leader for the benefit of our shareholders,” is how Valaris CEO Anton Dibowitz described the tie-up. Adamson called the move “well-timed to capitalize on an emerging, multi-year offshore drilling upcycle.” 2
Valaris, in its filing, set Feb. 9, 2027 as the outside date for closing the merger. The document spelled out breakup protections, such as a $195 million termination fee that Transocean would owe under specific circumstances. Also noted were limits on seeking rival offers during the merger process.
Noble barely budged in offshore drilling trading. Borr Drilling and Seadrill each slipped roughly 3%. Valaris stood out, with its move appearing tied to its own deal, not a broader trend in the sector.
The spread’s got room to snap wider in a hurry. If regulators or shareholders push back, or if Transocean shares keep dropping, Valaris takes a hit too, regardless of how steady the offshore market looks.
The clock ticks to Feb. 19: Valaris drops its fourth-quarter numbers before the bell, then hosts a call with analysts later that morning. What’s on traders’ minds? That discussion—and the deal filings set to follow—could clarify how the timeline shakes out, what the closing risk looks like, and the broader implications for cash and debt. 3
