Saipem and Subsea7 have taken significant steps toward merging, officially announcing their intentions to create a powerful new entity, Saipem7. This merger is set to establish Saipem7 among the giants of the energy services industry, boasting impressive financial figures projected from their combined operations.
According to reports, the new company will feature an aggregated order portfolio of €43 billion, projected revenues around €20 billion, and EBITDA exceeding €2 billion. The operational merger will share ownership equally between the two companies, with Saipem shareholders receiving approximately 6.688 shares for every Subsea7 share held, alongside Subsea7 distributing a remarkable €450 million extraordinary dividend before the merger concludes.
The consolidation is expected to yield significant cost synergies—projected estimates suggest annual savings of €300 million could be seen within three years following the merger’s completion. The overall closing of the deal is anticipated to occur by the second half of 2026, and it brings together two well-matched companies—in terms of market capitalization—with Saipem currently valued at €4.6 billion and Subsea7 at €4.7 billion.
Leaders from both companies, including Claudio Descalzi, CEO of Eni, and Dario Scannapieco from CDP Equity, expressed strong support for the merger, highlighting its potential to establish Saipem7 as a global market leader, particularly within subsea engineering and energy construction domains. Descalzi noted, “With this operation, we create a leader of significant industrial and technological value.” Such sentiments underline the ambition to combine expertise and resources, enhancing competitiveness across the sector.
The operational dynamics extend beyond sheer financial metrics. The merger fosters the creation of around 45,000 direct jobs, with 9,000 positions dedicated to engineering roles, indicating the entity’s commitment to innovative energy solutions and operational excellency. The Italian headquarters will also make Saipem7 one of the few energy corporations with significant operational control based out of Italy.
This agreement to merge marks the culmination of speculation surrounding the two firms and reflects strategic positioning within the oil and gas market and energy sectors, which are continually adapting to global energy demands. The synergies are expected not only to bolster financial returns but also to provide strategic avenues for addressing growing challenges faced by energy service providers, including sustainability and transformative energy practices.
Both companies have expressed their resolve to complete the merger effectively. The transaction will see Eni’s stake reduce from about 21% to near 10.6%, with CDP’s stake falling from 12.8% to approximately 6.4%. Eni, CDP Equity, and Siem Industries have all made commitments to favorably support the merger, showcasing consolidated backing which streamlines the merge process.
The financial markets reacted positively to the announcement, indicating investor optimism about the potential benefits of such consolidation. Investors have recorded substantial trading volumes for Saipem shares, with reports detailing over 51 million shares exchanged following the announcement. Notably, Saipem’s stock surged by about 2%, signaling strong interest among investors engaging with this newly forming major player.
The broader macroeconomic environment is also playing its role, with European markets reacting to successful merger forecasting, even amid fluctuations due to political events such as the recent German elections. Analysts suggest these kinds of mergers can generate renewed confidence among investors, particularly within the sectors responding to the growing demands for sustainable and efficient energy solutions.
Despite challenges posed by changing market conditions, Saipem and Subsea7 are committed to advancing this merger, promoting operational growth and innovation not only for shareholders but also creating significant industry advancements geared toward sustainable practices.
The merger of Saipem and Subsea7 stands as a bold maneuver within the energy services industry, heralding the arrival of Saipem7 as potentially transformative for both European and global energy markets. With the backing of notable stakeholders and strategic financial planning, the ambitious project is poised to reshape the existing paradigms of the energy sector.
This historic development not only marks a pivotal moment for the combined firms but also reinforces Italy's standing as a key player within the global energy arena.