Italian engineering group Saipem and Norwegian subsea services company Subsea7 have signed a binding merger agreement to create a combined energy services business with €21 billion in revenues and a €43 billion order backlog, they said on Thursday.
The new entity, to be named Saipem7, will merge the companies’ “highly complementary geographical footprints, competencies and capabilities, vessel fleets and technologies,” according to a joint statement.
The companies expect annual cost savings of around €300 million within three years of completion, driven by fleet optimisation, procurement, sales and marketing efficiencies, and streamlined processes.
Saipem and Subsea7 shareholders will each hold 50% of Saipem7’s share capital once the merger closes, anticipated in the second half of 2026. Shares will be listed on Milan and Oslo stock exchanges, with the company incorporated and headquartered in Milan.
“The management of both Saipem and Subsea7 confirm the compelling strategic rationale in creating a global leader in energy services, particularly considering the growing size of clients’ projects,” the statement said.
Kristian Siem is expected to be appointed chairman of the board, while Alessandro Puliti is set to assume the role of chief executive officer.
