Saipem and Subsea 7 Sign Merger Agreement

Italian offshore engineering and construction giant Saipem and offshore engineering and services player Subsea 7 have officially signed a binding merger agreement between the two companies. This agreement follows an initial agreement in principle signed on February 23, 2025, and is expected to be completed in the second half of 2026.

The merged company, to be known as Saipem 7, will be created by absorbing Subsea 7 into Saipem, with the headquarters remaining in Milan, Italy. The new entity will have a combined revenue of €21bn ($24.7bn), EBITDA above €2bn ($2.35bn), and a backlog of €43bn ($50.6bn).

Shareholders of both Saipem and Subsea 7 will each own 50% of the share capital of the combined company. Subsea 7 shareholders will receive 6.688 Saipem shares for each Subsea 7 share held. Major shareholders, including Siem Industries, Eni, and CDP Equity, have all backed the merger.

The chairman of Saipem 7 will be designated by Siem Industries, likely Kristian Siem, while the CEO will be appointed by CDP Equity and Eni. Alessandro Puliti, the current CEO of Saipem, is expected to lead the merged company.

Saipem 7 will be structured into four different businesses, with the offshore engineering and construction division forming an operationally autonomous company named Subsea 7, to be led by John Evans. The new company will have a global workforce of approximately 44,000 people, including over 9,000 engineers and project managers, as well as a fleet of more than 60 vessels.