Saipem and Subsea7 have announced the signing of the long-awaited merger agreement. A note explains that the resulting company will be renamed Saipem7 and will have revenues of approximately 21 billion, EBITDA of over 2 billion, will generate more than 800 million in Free cash flow, and will have a combined order backlog of 43 billion euros.
Regarding the resulting entity, it will consist of “over 60 construction vessels, strengthening Saipem7’s capabilities to operate across a wide range of projects, from shallow-water to ultra-deepwater operations, leveraging a comprehensive portfolio of heavy lift solutions, rigid pipelay using J-lay, S-lay, and reel-lay methods, flexible pipe and umbilical installation services, as well as cutting-edge capabilities in wind turbine installation, foundations, and cable laying.”
“The high complementarity in terms of geographic presence, expertise and capabilities, vessel fleets, and technologies will benefit Saipem’s global customer portfolio,” explains the Italian company. It adds that “the geographic diversification of Saipem and Subsea is reflected in the combined order backlog, where no single country contributes more than 15% of the total.”
Upon completion of the Proposed combination, Saipem and Subsea shareholders will each hold 50% of the capital. Subsea shareholders participating in the merger will receive 6,688 new Saipem shares for each Subsea share held. Subsea will distribute a special dividend of 450 million euros to its shareholders immediately prior to the completion of the Proposed combination.
Run-rate synergies, estimated at approximately 300 million euros annually, are expected to deliver significant value creation. The new Saipem will continue to have its legal headquarters in Italy and its headquarters in Milan, and its shares will be listed on both the Milan Stock Exchange and the Oslo Stock Exchange. Siem Industries, Subsea’s reference shareholder, and Eni and Cdp Equity, Saipem’s reference shareholders, have indicated their commitment to vote in favor of the Proposed combination. The completion of the merger is expected in the second half of 2026.
Kristian Siem will be appointed chairman of the joint company, and Alessandro Puliti will be CEO. Additionally, Puliti and John Evans will be appointed chairman and CEO, respectively, of the company managing the Offshore Engineering & Construction business.
