Saipem and Subsea7 to merge in $25bn energy services deal
Saipem and Subsea7 have signed a binding merger agreement that will create a global leader in energy services with combined revenues of approximately $25 billion.
The merged entity, to be renamed Saipem7, will generate more than $944 million in free cash flow and boast a combined backlog of $51 billion. The deal, which follows a memorandum of understanding signed in February, is expected to complete in the second half of 2026.
Under the terms of the agreement, Subsea7 shareholders will receive 6.688 new Saipem shares for each share held, with both sets of shareholders owning 50% of the combined company. Additionally, Subsea7 will distribute an extraordinary dividend of $531 million to its shareholders immediately before completion.
The merger brings together highly complementary geographical footprints and capabilities, with the combined business operating in more than 60 countries. Saipem7 will maintain a diversified fleet of over 60 construction vessels and employ approximately 44,000 people, including more than 9,000 engineers and project managers.
Annual synergies of approximately $354 million are expected from the third year following completion, driven by fleet optimisation, improved procurement terms, and operational efficiencies.
Saipem7 will remain incorporated in Italy with headquarters in Milan, whilst maintaining listings on both the Milan and Oslo stock exchanges. The company will be structured around four business units: Offshore Engineering & Construction, Onshore Engineering & Construction, Sustainable Infrastructures, and Drilling Offshore.
Key shareholders Eni, CDP Equity, and Siem Industries have committed to voting in favour of the combination. Kristian Siem is expected to serve as Chairman of Saipem7, whilst Alessandro Puliti will take the role of CEO
Extraordinary general meetings for both companies are scheduled for 25 September 2025, with completion subject to regulatory approvals including antitrust clearance and Italian government approval.
