Transocean Ltd. is reportedly in talks to merge with rival offshore drilling contractor Seadrill Ltd., according to a recent report from Bloomberg which cites “people familiar with the matter.”
Discussions are ongoing about the potential structure of a combination, said the people, who asked to not be identified “because the details are private,” the report said.
A final decision on pursuing a deal has not been made and the companies could opt to remain independent, the sources said. Representatives from the companies have not responded to requests for comment or have declined to comment, says Bloomberg.
There has been a significant amount of consolidation in the offshore drilling market in the past few years. Most recently, Noble Corp. became the world’s biggest offshore driller by market value after acquiring rivals Diamond Offshore Drilling Inc. this year and Maersk Drilling in 2022.
According to the Bloomberg report, merging with Seadrill would fit Transocean’s strategy of growing its list of backlog work, utilizing some of the world’s most advanced rigs capable of drilling in water more than two miles deep.
