Why Valaris (VAL) Surged on a Takeover Bid

Moerus Capital Management LLC, an investment management firm, announced that Valaris Limited (NYSE:VAL) was a significant contributor to their first-half 2026 performance. The company is a U.S.-based provider of offshore drilling services. Valaris' stock surged after Transocean announced an all-stock acquisition deal at a 32% premium to Valaris' previous closing price per share.

The acquisition was announced on February 9, 2026. Prior to the acquisition, Valaris was added to Moerus' fund in early 2025 due to a decline in its share price during the oil price slump and reduced offshore drilling activity. Moerus views Valaris as one of the most undervalued AI stocks, anticipating higher returns due to factors like Trump-era tariffs and the onshoring trend.