Valaris Ltd's stock plummeted 10.10% during intraday trading on Tuesday, reflecting significant investor concern over regulatory hurdles facing its proposed merger with Transocean.

The sharp decline follows news that both companies have received a second request for additional information from the U.S. Department of Justice regarding their merger review. This regulatory step extends the deal's timeline and indicates heightened antitrust scrutiny, creating uncertainty about the merger's successful completion.

Under the proposed all-share deal, each Valaris share would be valued at 15.235 Transocean shares. The extended review process, triggered by the DOJ's request on May 4, 2026, requires further submissions before the antitrust review can move forward, potentially delaying or jeopardizing the transaction.