Saipem, Subsea7 Sign Merger Agreement to Form Energy Services Giant

Energy services firms Saipem and Subsea7 have signed a binding merger agreement to create a leading energy services company under the name of Saipem7, which will have a combined backlog of over $50 billion.

The binding merger agreement follows the memorandum of understanding the companies signed in February 2025.

Completion of the proposed merger is anticipated to take place in the second half of 2026.

Aside from the backlog in excess of $50 million, the new company, to be named Saipem7, will have revenue of approximately $24.6 billion, EBITDA of over $2.3 billion, and will generate more than $930 million of free cash flow, according to the companies.

Also, the highly complementary geographical footprints, competencies and capabilities, vessel fleets and technologies are expected to benefit Saipem7’s global portfolio of clients.

Saipem7 will be created through an EU cross-border statutory merger, carried out by way of absorption of Subsea7 into Saipem.

Siem Industries, currently the largest shareholder of Subsea7, will own approximately 11.8% of Saipem7’s share capital, while Eni and CDP Equity, currently the largest shareholders of Saipem, will respectively own approximately 10.6% and 6.4% of Saipem7’s share capital.

Assuming all Subsea7 shareholders participate in the merger, Saipem and Subsea7 shareholders will own 50% each of the share capital of Saipem7 on completion.

Saipem7 will remain incorporated in Italy and headquartered in Milan, and will have its shares listed on both the Milan and Oslo stock exchanges.

The newly created company will be structured as four businesses - Offshore Engineering & Construction, Onshore Engineering & Construction, Sustainable Infrastructures and Drilling Offshore

The Offshore Engineering & Construction business will be contained within an operationally autonomous company, fully owned by Saipem7, named Subsea7, branded as ‘Subsea7, a Saipem7 Company’, and will comprise all Subsea7’s businesses and the asset-based services business of Saipem, including offshore wind.

Subsea7 will be incorporated in the U.K. and headquartered in London.