On February 23, two offshore giants, Italy’s Saipem and Norway’s Subsea7, simultaneously announced that they had reached a preliminary agreement to merge. A “giant” in the offshore and energy sector is set to emerge.
The merger will take the form of an EU cross-border statutory merger of Subsea7 into Saipem, with the new company named Saipem7. The parties are expected to sign a merger agreement in mid-2025 and to complete the merger in the second half of 2026, with the new company headquartered in Milan and listed on the Milan and Oslo stock exchanges.
Under the terms of the agreement, both shareholders will each hold a 50 percent stake in the combined company. The combined Saipem7 will have a total order backlog of EUR 43 billion, revenues of around EUR 20 billion and EBITDA of more than EUR 2 billion.
The offshore “giant” will have more than 45,000 employees, including more than 9,000 engineers and project managers, with operations in more than 60 countries around the world. Its construction fleet will exceed 60 vessels, covering a wide range of offshore operations from shallow to ultra-deep water.
The offshore engineering and construction business will establish an independently operated company named Subsea7, under the brand “Subsea7 – a Saipem7 Company.” Headquartered in London, it will encompass all of the original Subsea7’s operations and Saipem’s asset services business. The onshore engineering and construction business will focus on risk reduction and profitability enhancement. The sustainable infrastructure business will consolidate its position in the Italian market while seeking overseas expansion. The offshore drilling division will continue to improve EBITDA and cash flow.Following the merger, the new company will be organized into four business segments: Offshore Engineering & Construction, Onshore Engineering & Construction, Sustainable Infrastructure and Offshore Drilling.
At present, completing due diligence, signing a satisfactory merger agreement, and obtaining approval from both boards of directors are prerequisites for executing the final binding documents. Additionally, approval from both companies’ shareholders, the Italian government, and regulatory authorities will be required.
According to the official website, Saipem is an integrated energy services company, which, in addition to offshore business, is also involved in onshore engineering and construction, pipelaying, etc. Saipem currently has six plants, an offshore fleet of 21 construction vessels, of which 17 are owned, as well as 15 drilling rigs (9 owned).
Subsea7 specializes in engineering, construction and services in the offshore energy sector and has completed more than 1,000 projects globally since its inception. Subsea7’s construction fleet of approximately 40 vessels employs 15,000 people and operates in more than 30 countries and regions around the world.