Saipem, an Italian oilfield services provider, and Subsea7, a subsea engineering firm, have signed a binding merger agreement to form a new entity named Saipem7.
This development follows their earlier memorandum of understanding signed in February 2025. The merger aims to create a major player in the energy services sector, with the transaction expected to conclude in the latter half of 2026.
Subsea7 shareholders will receive 6.688 new shares in Saipem7 for each Subsea7 share held and an extraordinary cash dividend of €450m before finalisation. Pre-merger shareholders of Saipem and Subsea7 will each own 50% of the new entity.
Saipem7 is projected to achieve approximately €21bn in revenue and an EBITDA exceeding €2bn.
The merger is set to deliver annual synergies estimated at €300m and generate over €800m in free cash flow. Key financial strategies include distributing at least 40% of its free cash flow annually after lease liabilities.
Saipem’s expertise lies in engineering and constructing large offshore and onshore energy projects, operating in over 50 countries with a workforce of approximately 30,000.
Subsea7 specialises in offshore projects and services within the energy industry, focusing on renewable energy developments. Together, they aim to diversify their geographical footprint and enhance service offerings.
The newly formed Saipem7 will control a backlog of orders worth €43bn, with a fleet exceeding 60 construction vessels. The headquarters will remain in Milan, Italy, while Subsea7 will continue as a fully owned subsidiary based in London.
Saipem7 will consist of four divisions: Offshore Engineering & Construction, Onshore Engineering & Construction, Sustainable Infrastructures, and Drilling Offshore.
The Offshore division will operate as an autonomous company named Subsea7, fully owned by Saipem7 and branded as “Subsea7, a Saipem7 Company”. It will integrate all Subsea7’s businesses and Saipem’s Asset Based Services, including Offshore Wind. This division is expected to account for about 84% of the group’s EBITDA for the 12 months ending 31 December 2024.
Shareholders from Siem Industries, Eni, and CDP Equity have pledged support for the merger. Siem Industries is currently the largest shareholder in Subsea7, while Eni and CDP Equity are the largest shareholders of Saipem.
Upon completion, Kristian Siem is expected to become chairman, with Alessandro Puliti as CEO of Saipem7.
Regulatory approvals and shareholder votes are prerequisites for completing the merger, structured as a European Union (EU) cross-border statutory merger by absorption.
The merger anticipates improved capital expenditure efficiency and better investor access across equity and debt markets. The combined entity seeks to leverage enhanced capabilities to optimise project delivery across the global energy sector.
