BAKU, Azerbaijan, July 25. Saipem and Subsea7 have announced the signing of a binding merger agreement, formalising the terms initially outlined in their Memorandum of Understanding on February 23, 2025, Trend reports via Saipem.
The merger will create a global leader in energy services under the new name Saipem7.
According to the companies’ joint statement:
Saipem7 will have approximate revenues of €21 billion, EBITDA exceeding €2 billion, and will generate over €800 million in free cash flow.
The merged entity will boast a combined order backlog of €43 billion, with a diversified geographical footprint ensuring no single country accounts for more than 15% of total backlog.
The merger will combine highly complementary geographical presences, technological capabilities, and vessel fleets, enhancing service offerings to its global portfolio of clients.
Under the merger terms:
Subsea7 shareholders will receive 6.688 new Saipem shares for each Subsea7 share held.
Immediately before completion, Subsea7 will distribute an
extraordinary dividend of €450 million to its shareholders.
Annual synergies are expected to reach approximately €300 million
on a run-rate basis, delivering significant value to Saipem7
shareholders.
On completion, Saipem and Subsea7 shareholders will each own 50% of Saipem7’s share capital.
Ownership structure post-merger is expected to include:
Siem Industries (currently Subsea7’s largest shareholder) with ~11.8% stake in Saipem7
Eni and CDP Equity (currently Saipem’s largest shareholders) with ~10.6% and ~6.4% stakes respectively.
The merger will be structured as an EU cross-border statutory merger, whereby Subsea7 will be absorbed into Saipem, which will subsequently be renamed Saipem7. The new entity will remain incorporated in Italy, headquartered in Milan, and its shares will be listed on both the Milan and Oslo stock exchanges.
Major shareholders Siem Industries, Eni, and CDP Equity have committed to vote in favour of the transaction. Completion is anticipated in the second half of 2026, subject to regulatory and shareholder approvals.
Additionally, Subsea7 shareholders voting against the merger at the upcoming Extraordinary General Meeting will have the right to dispose of their shares for cash compensation, determined under Luxembourg company law. Details of the compensation formula will be published on Subsea7’s website ahead of the vote.
The merger is expected to position Saipem7 as a global champion in energy services, combining extensive subsea and offshore capabilities to support the energy transition and future market growth.