Energy Giants Saipem and Subsea7 Announce Merger Plans
Two major players in the energy services industry, Saipem and Subsea7, have recently revealed their intentions to merge and form a new entity named Saipem7. This groundbreaking merger is set to create a powerhouse in the sector, with a combined backlog exceeding $45 billion.
Under the terms of the agreement, shareholders of both Saipem and Subsea7 will each own 50% of the share capital of the newly formed company. With an estimated revenue of $20.9 billion and core earnings projected to surpass $2 billion, Saipem7 is poised to become a global leader in the field.
Boasting a workforce of over 45,000 individuals, including more than 9,000 engineers and project managers, Saipem7 will have the expertise and manpower to undertake complex projects on a global scale.
Subsea7 shareholders will receive 6.688 Saipem shares for each Subsea7 share held, along with an extraordinary dividend of $470 million prior to the completion of the merger. The combined company is set to be listed on both the Milan and Oslo stock exchanges, further solidifying its position in the market.
Key stakeholders, including Siem Industries, Eni, and CDP Equity, have expressed their unwavering support for the merger and intend to vote in favor of the transaction. The Chairman of the combined company will be designated by Siem Industries, while the CEO will be appointed by CDP Equity and Eni.
As part of the agreement, Alessandro Puliti, the current CEO of Saipem, is slated to become the CEO of Saipem7, while John Evans, the CEO of Subsea7, will lead the offshore business division within the new entity. This segment will encompass all offshore engineering and construction activities of both companies.
The final terms of the merger are expected to be presented to the respective Board of Directors for approval by mid-2025, with completion anticipated in the second half of 2026. The formation of Saipem7 marks a significant development in the energy services industry, setting the stage for a new era of growth and innovation.