Milan, Luxembourg, 23 February 2025 – Saipem and Subsea7 have announced an agreement in principle on the key terms of a potential merger through a memorandum of understanding (MoU). The proposed merger aims to create a global leader in energy services, with the combined entity to be renamed Saipem7. The new company will boast a combined backlog of €43 billion, revenue of approximately €20 billion, and EBITDA exceeding €2 billion.
The merger brings together over 45,000 employees, including more than 9,000 engineers and project managers, and combines complementary geographical footprints, competencies, vessel fleets, and technologies. Shareholders of both companies will own 50% each of the combined entity’s share capital. Subsea7 shareholders will receive 6.688 Saipem shares for each Subsea7 share held, along with an extraordinary dividend of €450 million prior to completion.
The transaction is expected to deliver significant value creation for shareholders, with anticipated annual synergies of approximately €300 million by the third year post-completion. One-off costs to achieve these synergies are estimated at €270 million. The combined company will be listed on both the Milan and Oslo stock exchanges.
Siem Industries, Eni, and CDP Equity, as reference shareholders of Subsea7 and Saipem, have expressed strong support for the transaction. Completion is anticipated in the second half of 2026. The strategic rationale includes comprehensive solutions for clients, world-class expertise, a diversified fleet, and innovation in offshore technologies.
The combined company will be structured into four business units: Offshore Engineering & Construction, Onshore Engineering & Construction, Sustainable Infrastructures, and Offshore Drilling. The Offshore Engineering & Construction unit will operate under the name Subsea7 and be branded as “Subsea7 – a Saipem7 Company,” led by Mr. John Evans.
Shareholder remuneration policies include dividends of at least 40% of Free Cash Flow after repayment of lease liabilities post-completion. The transaction remains subject to customary conditions, including shareholder and regulatory approvals.
— news from GlobeNewswire