8:15AM Transocean and GlobalSantaFe agreed to merge to form a $53 billion drilling contractor.

Transocean, Inc. (RIG: chart) and GlobalSantaFe Corp. (GSF: chart) announced an agreement to merge to form a $53 billion drilling contractor. Under the terms of the deal, Transocean shareholders will receive $33.03 in cash and 0.6996 shares of the combined company for each Transocean share they hold. At the same time, GlobalSantaFe stockholders will get $22.46 in cash and 0.4757 shares of the combined company for each GlobalSantaFe share they hold.

The new company will be named Transocean. It will retain principal offices in Houston and trade on the NYSE under the RIG symbol. After the completion of the merger, GlobalSantaFe''s Chairman Robert Rose will become chairman of the new company while Transocean current CEO Robert Long will keep the same position in the merged firm.