Italian oilfield services provider Saipem and subsea engineering firm Subsea7 have reached an agreement on key terms for a potential merger with an aim to create a major global energy services provider.
In this regard, the two companies have signed a memorandum of understanding (MoU), outlining the framework for the proposed combination. The two firms intend to consolidate their operations into a single entity named Saipem7.
The proposed merger would bring together two companies with established positions in offshore and subsea energy services. The combined entity would have a backlog of €43bn, annual revenue of approximately €20bn, and EBITDA exceeding €2bn.
Their workforce would comprise more than 45,000 employees, including over 9,000 engineers and project managers. The combination would integrate both firms’ geographical presence, project execution capabilities, vessel fleets, and engineering expertise.
Saipem, listed on the Milan Stock Exchange, operates six fabrication yards and manages an offshore fleet of 21 construction vessels, comprising 17 owned vessels and four third-party-owned vessels under its management. The company also has a fleet of 15 drilling rigs, with nine owned units.
Subsea7, listed on the Oslo Stock Exchange, provides inspection, repair, and maintenance (IRM) services, along with integrity management, drill rig support, production enhancement, and decommissioning support. Its fleet consists of a combination of chartered vessels and high-specification owned vessels.
Under the agreed structure, Saipem and Subsea7 shareholders would each hold a 50% stake in the new company.
As part of the deal, Subsea7 shareholders would receive 6.688 Saipem shares for each Subsea7 share held.
Additionally, Subsea7 would distribute an extraordinary dividend of €450 million to its shareholders immediately before the transaction’s completion. The merger is projected to generate annual synergies of approximately €300m within three years of closing, with estimated one-off integration costs of €270m.
Saipem7 would be headquartered in Milan, Italy and listed on both the Milan and Oslo stock exchanges. The company would operate through four business divisions, which are offshore engineering and construction, onshore engineering and construction, sustainable infrastructures, and offshore drilling.
The deal has received backing from Siem Industries, the largest shareholder of Subsea7. It has also secured support from Eni and CDP Equity, which hold significant stakes in Saipem.
Following completion of the deal, Siem Industries will own approximately 11.9% of the new entity, while Eni and CDP Equity will hold around 10.6% and 6.4%, respectively. Assuming all Subsea7 shareholders participate, the combined company’s ownership will be evenly split between current Saipem and Subsea7 shareholders.
Regulatory approvals and shareholder consent will be required before the merger can proceed. The transaction is expected to close in the second half of 2026.
Saipem, which is Listed on the Milan Stock Exchange has six fabrication yards and an offshore fleet of 21 construction vessels, of which 17 owned and four owned by third parties and managed by the company and 15 drilling rigs, of which nine are owned.
Subsea 7, which is listed on the Oslo Stock Exchange, is engaged in inspection, repair and maintenance (IRM), integrity management, drill rig support, production enhancement and decommissioning support services. Its fleet includes chartered and high-specification owned vessels.
