Saipem and Subsea7 have signed a memorandum of understanding (MoU) for a potential merger, aiming to create a dominant player in the subsea and offshore engineering and construction (E&C) sector.
The new entity, Saipem7, would have a combined backlog of €43 billion, annual revenue of approximately €20 billion, and EBITDA exceeding €2 billion. It would employ over 45,000 people, including 9,000 engineers and project managers, operating in more than 60 countries.
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The merger would integrate a fleet of over 60 construction vessels, strengthening capabilities across shallow and ultra-deepwater operations. Both companies view the deal as a strategic move to enhance competitiveness, operational synergies, and capital structure.
The agreement remains subject to due diligence, board approvals, and regulatory clearance, including approval from the Italian government. Final terms are expected to be approved in mid-2025, with completion anticipated in the second half of 2026.
Saipem7 will be structured as a merger of equals, incorporating Subsea7 into Saipem at a fixed 50-50 exchange ratio. Saipem will retain its headquarters and listing in Italy while securing a listing on Norway’s stock exchange. Subsea7 shareholders will receive 6.688 Saipem shares for each Subsea7 share held, along with a €450 million extraordinary cash dividend before completion.
The combined company will operate four divisions: Offshore Engineering & Construction, Onshore Engineering & Construction, Sustainable Infrastructures, and Offshore Drilling. The Offshore E&C unit will function independently under the Subsea7 name, headquartered in London and led by John Evans.
Beyond the merger, Saipem recently reported progress on Angola’s first non-associated gas project, with the largest gas production topside built in the country set for deployment. Meanwhile, Subsea7 secured a contract with Equinor for a front-end engineering and design (FEED) study for the Fram Sør project.
