Saipem, Subsea7 Agree to Multibillion-Dollar Merger to Form Saipem7
(P&GJ) — Saipem and Subsea7 have reached an agreement in principle to merge, forming a global energy services company with a combined backlog of $46.8 billion, revenue of approximately $21.8 billion, and EBITDA exceeding $2.2 billion.
The companies signed a memorandum of understanding outlining key terms of the deal, with completion expected in the second half of 2026.
Under the agreement, the merged company will be called Saipem7, with ownership split evenly between Saipem and Subsea7 shareholders. Subsea7 shareholders will receive 6.688 Saipem shares for each Subsea7 share held and will receive an extraordinary dividend of $489 million before completion. The combined entity will be listed on the Milan and Oslo stock exchanges.
The merger aims to enhance project execution by combining the companies' global reach, vessel fleets, and engineering expertise. The new company will have a workforce of over 45,000 people, including more than 9,000 engineers and project managers. The transaction is expected to generate annual synergies of $326 million within three years, with one-time costs of $294 million to achieve them.
Saipem and Subsea7’s key stakeholders, including Siem Industries, Eni, and CDP Equity, support the transaction and plan to vote in favor. Siem Industries will designate the chairman, while CDP Equity and Eni will appoint the CEO. Alessandro Puliti is expected to serve as CEO, while John Evans will lead the Offshore Engineering & Construction division, which will operate as an independent business under the Subsea7 brand.
The merger will create a company with expanded capabilities across offshore and onshore engineering, drilling, and renewable energy services. The combined fleet of more than 60 vessels will support operations ranging from shallow water to ultra-deepwater projects, including pipeline installation and offshore wind development.
The deal structure involves a cross-border statutory merger, with Subsea7 integrating into Saipem, which will be renamed Saipem7. Following completion, Siem Industries will own approximately 11.9% of the company, while Eni and CDP Equity will hold 10.6% and 6.4%, respectively.
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