Italy’s Saipem and Norway’s Subsea7 Merger to Create Energy Services Giant
February 24, 2025
Energy services firms Saipem and Subsea7 have reached an agreement on the key terms for possible merger of the two companies under one unit to be named Saipem7, whose combined backlog would be over $45 billion.
Saipem and Subsea7 shareholders will own 50% each of the share capital of the combined company, whose revenue is expected to be around $20.9 billion, and core earnings in excess of $2 billion.
Saipem7 will become a global organization of over 45,000 people, including more than 9,000 engineers and project managers.
Subsea7 shareholders will receive 6.688 Saipem shares for each Subsea7 share held. Subsea7 will distribute an extraordinary dividend for an amount equal to $470 million immediately prior to completion.
The combined company will be listed on both the Milan and Oslo stock exchange.
Siem Industries, a shareholder of Subsea7, as well as Eni and Cassa Depositi e Prestiti (CDP Equity), which are the shareholders of Saipem, have expressed their strong support and intend to vote in favor of the transaction.
As part of the agreement, the combined company’s Chairman will be designated by Siem Industries while the CEO will be designated by CDP Equity and Eni.
In addition, it is currently envisaged that Saipem’s CEO, Alessandro Puliti, will be appointed as CEO of the Saipem7 while it is currently envisaged that Subsea7’s CEO, John Evans, will be the CEO of the entity that will manage the offshore business of the combined company.
The offshore business will comprise all of Subsea7 and Saipem’s offshore engineering and construction activities.
The parties currently plan to submit the final terms of the proposed combination to their respective Board of Directors for approval and to enter into the merger agreement around mid-2025.
Completion is currently expected to occur in the second half of 2026.
