Italian offshore engineering and construction giant Saipem and offshore engineering and services player Subsea 7 have signed a binding merger agreement between the two companies.
The terms and conditions of the merger are in line with an agreement in principle on the key terms of the merger signed on February 23, 2025. The merger deal is expected to be completed in the second half of 2026.
As previously communicated, the merged company will be created by absorbing Subsea 7 into Saipem, with the latter renamed Saipem 7. The company will remain incorporated in Italy and headquartered in Milan, and listed on both the Milan and Oslo stock exchanges.
Saipem 7 will have revenue of around €21bn ($24.7bn), EBITDA above €2bn ($2.35bn), and a combined backlog of €43bn ($50.6bn).
Saipem and Subsea 7 shareholders will own 50% each of the share capital of the combined company. Subsea 7 shareholders will receive 6.688 Saipem shares for each Subsea 7 share held. Siem Industries, the largest shareholder of Subsea 7, and Eni and CDP Equity, the largest shareholders of Saipem, have all agreed to back the merger.
The chairman of the Saipem 7 will be designated by Siem Industries, most likely Kristian Siem, while the CEO will be appointed by CDP Equity and Eni. As it now stands, Alessandro Puliti, the CEO of Saipem, will take on the CEO role of the merged firm.
Saipem7 will be structured into four different businesses, with the largest business – offshore engineering and construction – set to be incorporated into an operationally autonomous company named Subsea 7, led by John Evans.
The new company will have a global workforce of approximately 44,000 people, including more than 9,000 engineers and project managers, as well as a fleet of over 60 vessels.
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