Saipem and Subsea7 to Merge, Creating Global Energy Services Powerhouse

Saipem and Subsea7 have signed a binding merger agreement to create a global powerhouse in energy services. The resulting entity, to be named Saipem7, will combine the two companies’ complementary geographical footprints and capabilities to better serve clients in more than 60 countries.

“The management of both Saipem and Subsea7 confirm the compelling strategic rationale in creating a global leader in energy services, particularly considering the growing size of clients’ projects,” the companies stated in their joint announcement.

The merger will be executed through an EU cross-border statutory merger, with Subsea7 being absorbed into Saipem, which will be renamed Saipem7. The company will maintain its incorporation in Italy with headquarters in Milan, while listing its shares on both the Milan and Oslo stock exchanges.

According to financial details released, Saipem7 will have annual revenue of approximately €21 billion (US $23.43 billion), EBITDA exceeding €2 billion, and will generate more than €800 million in free cash flow. The combined backlog stands at an impressive €43 billion, with no single country contributing more than 15% of the total.

Under the agreement, shareholders of both companies will each own 50% of Saipem7’s share capital.

Leadership of the new entity will be balanced between the merging companies. Mr. Kristian Siem is expected to be appointed as Chairman of the Board of Directors, while Mr. Alessandro Puliti will serve as CEO of Saipem7.

The merger promises significant synergies of approximately €300 million annually from the third year after completion, driven by fleet optimization, improved procurement, and process efficiencies. Saipem7 is expected to distribute at least 40% of its free cash flow to shareholders annually after repayment of lease liabilities.

The new company will be structured as four business units: Offshore Engineering & Construction, Onshore Engineering & Construction, Sustainable Infrastructures, and Drilling Offshore. The Offshore Engineering & Construction division, representing approximately 84% of the combined group’s EBITDA, will operate as “Subsea7, a Saipem7 Company.”

The combined fleet will feature 60 construction vessels capable of executing diverse projects from shallow to ultra-deepwater environments, offering advanced capabilities including heavy lift operations, high-end J-lay, S-lay and reel-lay rigid pipeline solutions, flexible pipe and umbilical installation, and market-leading technology for wind turbine, foundation and cable lay installations.

Subject to regulatory approvals and shareholder votes, the merger is anticipated to close in the second half of 2026. Both companies have scheduled Extraordinary General Meetings for September 25, 2025, to seek shareholder approval.