(WO) — Eldorado Drilling AS has agreed to acquire Vantage Drilling International in a merger valued at approximately $258 million, combining the companies' offshore drilling operations as demand for high-specification rigs remains strong across key offshore markets.

Under the agreement, Vantage will become a wholly owned subsidiary of Eldorado while continuing to operate as Vantage Drilling International Ltd. The companies expect the transaction to close in the third quarter of 2026, subject to shareholder approval and customary closing conditions.

The merger combines Vantage's global offshore drilling capabilities and long-standing customer relationships with Eldorado's investment program, creating a larger offshore drilling platform positioned to pursue opportunities across multiple regions.

“We are excited to join forces with Eldorado,” said Ihab Toma, Chief Executive Officer of Vantage Drilling. “Our teams share a commitment to safety, operational excellence and customer success. This transaction strengthens our ability to invest in our people and assets, pursue high-quality opportunities across regions, and maintain the standards our customers expect.”

“Today’s announcement marks an important step in building a scaled, resilient offshore drilling platform,” said Bernie Wolford, Chairman of Eldorado Drilling. “By combining Vantage Drilling’s global operating capabilities and long-term customer relationships with Eldorado’s investment program, we believe we can deliver enhanced solutions for customers, accelerate growth opportunities and create lasting value.”

Vantage's board of directors unanimously approved the merger and recommended that shareholders support the transaction. A shareholder meeting is expected to be held on June 18.