Saipem and Subsea7 sign binding merger deal
24 July 2025
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Italian offshore oil and gas engineering, procurement and construction (EPC) contractor Saipem and UK-based offshore engineering and services player Subsea7 have entered into a binding merger agreement, in line with the terms they first announced in February.
The new company, to be named Saipem7, is expected to generate €21bn ($24.7bn) in revenues and have an order backlog worth €43bn ($50.6bn), according to a joint statement.
Saipem7 will merge the “highly complementary geographical footprints, competencies and capabilities, vessel fleets and technologies” of both companies.
Annual cost saving synergies of around €300m (£353m) are expected within three years of the merger, 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.
ALSO READ: Saipem moves to maintain grip on Gulf offshore market
Kristian Siem, who is presently the chairman of the board of directors of Subsea7, is expected to retain his role as chairman of the board at Saipem7.
Saipem CEO Alessandro Puliti is expected to become CEO of the new company.
Saipem7 will be structured into four businesses – offshore engineering and construction, onshore engineering and construction, sustainable infrastructures and offshore drilling.
The offshore engineering and construction business will be incorporated into an operationally autonomous company branded as ‘Subsea 7 – a Saipem7 company’. It is expected that John Evans, CEO of Subsea7, will lead this business unit.
It will comprise all of Subsea7’s business and the asset-based services of Saipem, representing approximately 83% of the combined group’s earnings before interest, taxes, depreciation and amortisation (ebitda) of the 12 months up to 30 September 2024. The company will be headquartered in London.
When merged, the new company will be a global organisation of over 45,000 people, including more than 9,000 engineers and project managers in more than 60 countries.
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