Saipem, Subsea7 reach merger agreement

Saipem and Subsea7 have entered into a binding merger agreement, in line with terms first tabled earlier this year.

The new company, to be renamed Saipem7, will have €21bn in revenues and a €43bn order backlog through the combination, according to a joint statement.

It will merge the “highly complementary geographical footprints, competencies and capabilities, vessel fleets and technologies” of both companies.

Annual cost saving synergies of around €300m are expected within three years of the link-up, driven by fleet optimisation, procurement, sales and marketing, and process efficiencies, the companies said.

Saipem and Subsea7 shareholders will own 50% each of the share capital of Saipem7 once the merger is completed, which is expected in the second half of 2026.

Shares will be listed on both the Milan and Oslo stock exchanges, and the company will be incorporated and headquartered in Milan.

“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 said.

Kristian Siem is expected be appointed chairman of the board of directors, while Alessandro Puliti is earmarked to take the chief executive officer role.

More information: https://renews.biz/102059/saipem-subsea7-reach-merger-agreement/