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Valaris Wins Brazilian Regulatory Approval for $5.8B Transocean Deal

BullishHigh impact
VAL$84.73 −0.96%RIG$5.58 −1.24%

Valaris Ltd. (NYSE:VAL) secured approval from Brazil's antitrust regulator, CADE, for its planned $5.8 billion sale to Transocean Ltd. (NYSE:RIG). The agency decided that the merger can proceed without any restrictions.

The decision clears the final regulatory hurdle necessary to complete the acquisition. It follows antitrust approval from the U.S. Department of Justice late last month, moving both offshore drilling contractors closer to finalizing the transaction.

The ruling is expected to be published in Brazil's Official Journal later this week, starting a mandatory 15-day waiting period before becoming final. After that period expires, all regulatory conditions will be fulfilled, and the companies expect the deal to close in the fourth quarter.

Key points

  • Brazil's antitrust regulator CADE approved the $5.8 billion sale of Valaris Ltd. (NYSE:VAL) to Transocean Ltd. (NYSE:RIG) without restrictions.
  • The regulatory clearance marks the final regulatory approval condition needed to complete the merger.
  • The deal previously received antitrust approval from the U.S. Department of Justice late last month.
  • A mandatory 15-day waiting period begins once the ruling is published in Brazil's Official Journal.
  • Valaris Ltd. and Transocean Ltd. expect the acquisition to close in the fourth quarter.

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Questions and answers

Has Brazil approved the Transocean purchase of Valaris?

Yes, Brazil's antitrust regulator CADE approved Transocean Ltd.'s $5.8 billion acquisition of Valaris Ltd. without restrictions.

When will the Valaris and Transocean merger close?

The deal is expected to close in the fourth quarter after a 15-day waiting period following publication in Brazil's Official Journal.

What regulatory approvals do Transocean and Valaris need?

All regulatory conditions will be satisfied once Brazil's approval becomes final. The deal already received U.S. Department of Justice clearance.