Saipem and Subsea7 have reached an agreement in principle on the key terms of a potential 50:50 merger, marking a significant step toward the creation of a global leader in energy services.
The companies have signed a memorandum of understanding (MoU) that outlines the proposed merger, which aims to combine their strengths in the energy sector. The new entity will be named Saipem7 and will have a combined backlog of €43 billion, with expected revenues of approximately €20 billion and an EBITDA exceeding €2 billion. The merger is anticipated to complete in the second half of 2026.
“This merger brings together two highly complementary companies with a shared vision for the future of the energy industry,” said a statement from both companies.
The combined company will be headquartered in London and will employ over 45,000 staff, including more than 9,000 engineers and project managers. It will be structured into four main business segments: Offshore Engineering & Construction, Onshore Engineering & Construction, Sustainable Infrastructures, and Offshore Drilling.
Subsea7’s Offshore Engineering & Construction business will be established as an operationally autonomous entity, branded as “Subsea7 – a Saipem7 Company,” which will be led by John Evans. This segment will include all of Subsea7’s existing operations along with Saipem’s Asset Based Services division. The Offshore Engineering & Construction segment is projected to contribute approximately 83% of the combined group’s EBITDA for the 12 months ending on September 30, 2024.
“Together, Saipem and Subsea7 will offer unmatched expertise and resources, meeting the growing demands of our global client base,” the companies noted.
The merger is expected to generate annual synergies of about €300 million by the third year following completion, although one-time integration costs are projected at approximately €270 million. Both companies’ shareholders will hold equal stakes in the newly formed entity.
Saipem and Subsea7 also confirmed that their respective reference shareholders—Siem Industries, Eni, and CDP Equity—have expressed strong support for the merger and will vote in favor of the transaction. The companies have entered into a separate MoU, setting the terms for a shareholders agreement to be enacted upon completion of the merger.
Alessandro Puliti is expected to be appointed as the CEO of the new company once the merger is finalized. The merged entity will be listed on both the Milan and Oslo stock exchanges.
