Energy services firms Saipem and Subsea7 have officially signed a binding merger agreement to form a leading energy services company named Saipem7. This merger will consolidate their expertise and resources to create a powerhouse in the industry with a combined backlog exceeding $50 billion.

The merger agreement solidifies the memorandum of understanding that was initially signed by the two companies in February 2025. The completion of this merger is expected to occur in the second half of 2026.

Upon completion, Saipem7 will boast a revenue of approximately $24.6 billion, an EBITDA of over $2.3 billion, and generate more than $930 million in free cash flow. The company’s extensive backlog and financial strength will position it as a formidable player in the energy services sector.

With highly complementary geographical footprints, competencies, vessel fleets, and technologies, Saipem7 is poised to serve a diverse global portfolio of clients effectively. The merger will leverage the strengths of both companies to enhance service offerings and drive innovation in the industry.

Under the merger structure, Subsea7 will be absorbed into Saipem through an EU cross-border statutory merger. Siem Industries, the largest shareholder of Subsea7, will hold approximately 11.8% of Saipem7’s share capital, while Eni and CDP Equity, the top shareholders of Saipem, will own around 10.6% and 6.4% of the share capital, respectively.

Upon completion of the merger, assuming full participation from Subsea7 shareholders, Saipem and Subsea7 shareholders will each hold a 50% share of the capital in Saipem7. The new entity will be listed on both the Milan and Oslo stock exchanges, with its headquarters remaining in Milan, Italy.

Saipem7 will be structured into four distinct business units – Offshore Engineering & Construction, Onshore Engineering & Construction, Sustainable Infrastructures, and Drilling Offshore. The Offshore Engineering & Construction division will operate as an independent entity named Subsea7, branded as ‘Subsea7, a Saipem7 Company’, encompassing all Subsea7 businesses and Saipem’s asset-based services, including offshore wind, with incorporation in the UK and headquarters in London.