---
title: "Valaris’ Deal Covenants Curb Strategic Flexibility and Capital Moves Amid Business Combination Agreement"
description: "Valaris Ltd (VAL) has revealed new operational constraints due to its Business Combination Agreement, which limits strategic actions like acquisitions and capital allocation changes. This may hinder i"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/276527967.md"
published_at: "2026-02-22T06:06:21.000Z"
---

# Valaris’ Deal Covenants Curb Strategic Flexibility and Capital Moves Amid Business Combination Agreement

> Valaris Ltd (VAL) has revealed new operational constraints due to its Business Combination Agreement, which limits strategic actions like acquisitions and capital allocation changes. This may hinder its competitiveness. The average stock price target for VAL is $55.00, indicating a potential downside of 42.56%.

Valaris Ltd (VAL) has disclosed a new risk, in the Regulation category.

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Valaris Ltd faces operational constraints while the Business Combination Agreement remains in force, as it must generally operate in the ordinary course consistent with past practices. These interim covenants may delay or prevent strategic actions such as acquisitions, financings, asset encumbrances, or changes to capital allocation, potentially limiting its agility versus competitors.

The average VAL stock price target is $55.00, implying -42.56% downside potential.

To learn more about Valaris Ltd’s risk factors, click here.

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- [VAL.US - Valaris](https://longbridge.com/en/quote/VAL.US.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| Valaris Earnings Review: Q4 Summary | Valaris (NYSE:VAL) reported its Q4 earnings on February 19, 2026, beating estimates by 34.15% with an EPS of $0.55 compa | [Link](https://longbridge.com/en/news/276385439.md) |
| Valaris Issues Fleet Status Report \| VAL Stock News | Valaris Limited (NYSE: VAL) has released a Fleet Status Report detailing the current status of its offshore drilling rig | [Link](https://longbridge.com/en/news/276177105.md) |
| Why Valaris Limited stock took it on the chin today | The company moved in sync with the business it's soon to combine with. | [Link](https://longbridge.com/en/news/276182260.md) |
| Valaris Ltd SEC 10-K Report | Valaris Ltd has released its 2025 10-K report, highlighting significant financial achievements, including total operatin | [Link](https://longbridge.com/en/news/276482464.md) |
| Visagar Polytex Ltd Says Board To Discuss Proposal For Reorganization | Visagar Polytex Ltd :VISAGAR POLYTEX LTD - BOARD TO DISCUSS PROPOSAL FOR REORGANIZATION | [Link](https://longbridge.com/en/news/276114602.md) |

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.