By John Meyer, consultant in financial affairs – Eurasia Business News, February 24, 2025. Article No 1433.

Italy’s Saipem and Norway’s Subsea7 have announced a merger agreement, creating a global leader in energy services. The combined company, to be named Saipem7, will be headquartered in Milan and have its shares listed on both the Milan and Oslo stock exchanges, reported Saipem.

Here are key details about the merger:

Merger Details

Valuation: The merger deal is valued at approximately $4.9 billion.

Ownership Structure: Saipem and Subsea7 shareholders will each own 50% of the combined company’s share capital.

Financials: Saipem7 will have a combined backlog of €43 billion (approximately $45 billion), annual revenue of about €20 billion, and EBITDA exceeding €2 billion.

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The new company will have a global organisation of over 45,000 people, including more than 9,000 engineers and project managers.

Share Exchange and Dividend : Subsea7 shareholders will receive 6.688 Saipem shares for each Subsea7 share held. Assuming all Subsea7 shareholders participate in the merger, the share capital of the Combined Company will be held 50-50% by the current shareholders of Saipem and Subsea7.

Subsea7 will distribute an extraordinary dividend of €450 million before the deal’s completion.

Leadership and Governance

CEO: Alessandro Puliti, current CEO of Saipem, is expected to lead Saipem7.

Offshore Business: John Evans, CEO of Subsea7, will manage the offshore business unit.

Chairman: The chairman will be designated by Siem Industries.

Synergies and Completion

Synergies: Annual synergies of approximately €300 million are expected to be achieved in the third year after completion, with one-off costs of about €270 million.

Completion: The merger is expected to be completed in the second half of 2026.

This merger aims to create a global powerhouse in energy services, based in Europe, leveraging the complementary strengths of both companies to enhance shareholder value and client offerings.

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© Copyright 2025 – Eurasia Business News. Article no. 1433.