The major merger between two offshore engineering giants, Saipem and Subsea 7, has made significant progress.
On July 24, Saipem announced on its official website that it had signed a binding merger agreement with Subsea7, which is expected to be completed in the second half of 2026. The merger will create a global leader in the energy services sector, with the highly complementary geographical footprint, expertise, fleet, and technology of both companies providing significant advantages to the global customer base of the new company.
According to the agreement, the proposed merger between Saipem and Subsea7 will take the form of a cross-border statutory merger under EU law, with Subsea7 being merged into Saipem. The new company will be named Saipem7, with each company holding a 50% stake in the new company.
The new company will be based in Milan and listed on the Milan and Oslo stock exchanges. It is expected to have revenues of €21 billion, EBITDA of over €2 billion, and a total order backlog of €43 billion.
According to documents disclosed by Saipem on its official website, Subsea7’s major shareholder Siem Industries and Saipem’s major shareholders Eni and CDP Equity fully support the proposed merger and have signed a shareholder agreement confirming that they will vote in favor of the proposed merger.
As part of this agreement, to ensure balance in leadership and governance, the CEO of Saipem7 will be appointed by Eni and CDP Equity, while the Chairman of the Board of Directors of Saipem7 will be appointed by Siemens Industries.
According to the plan, Saipem7 will operate in four business segments: offshore engineering and construction, onshore engineering and construction, sustainable infrastructure, and offshore drilling. In terms of personnel appointments, Kristian Siem and Alessandro Puliti are expected to be appointed as the chairman of the board and CEO of Saipem7, respectively.
In the offshore engineering and construction business segment, an independently operated company named Subsea7 will be established, with the brand identity “Subsea7 – a Saipem7 Company.” Headquartered in London, it will be primarily responsible for all of the original Subsea7 business as well as Saipem’s asset-based service business (including offshore wind power). The board of directors will consist of seven members, including Alessandro Puliti (chairman), John Evans (CEO), Kristian Siem, and four other independent directors.
Senior management at both companies believe that Saipem and Subsea7 are highly complementary in terms of market products and geography. The merger will create value for all shareholders and stakeholders, both in the current market and in the long term, and is expected to generate annual synergies of approximately €300 million in the third year after completion.
After the merger, this “giant” offshore engineering company will have about 44,000 employees, including more than 9,000 engineers and project managers, a diversified fleet of more than 60 ships, and operations in more than 60 countries around the world. Its business covers a variety of offshore operations from shallow water to ultra-deep water, and will provide a complete portfolio of offshore and onshore services from drilling, engineering, construction to oilfield life cycle services and decommissioning services, and can better optimize the project progress of customers in the fields of oil, gas, carbon capture and renewable energy.
According to its official website, Saipem is a comprehensive energy services company that currently owns six factories and an offshore fleet of 21 construction ships, including 17 owned ships, as well as 15 drilling platforms (nine of which are owned). Subsea7 specializes in engineering, construction, and services in the marine energy sector, with a construction fleet of approximately 40 ships.