Saipem, the renowned Italian energy services company, and the Norwegian firm Subsea7 have unveiled a significant agreement to merge, marking the establishment of Saipem7 as a leading global player in energy services. Announced on February 23, 2025, this merger not only seeks to fortify the competitive stance of both businesses but also reflects strategic responsiveness to the changing dynamics of the energy sector.
The consolidation of Saipem and Subsea7 is positioned to craft a new titan within the industry, boasting impressive figures: Saipem7 will have approximately 43 billion euros worth of orders, estimated annual revenues of about 20 billion euros, and more than 2 billion euros of EBITDA. This joint venture is set to house over 45,000 employees globally, more than 9,000 of whom will be engineers and project managers, enhancing its capacity to take on expansive projects.
This merger is built on the framework of operational synergies, whereby substantial benefits estimated at around 300 million euros annually begin from the third year post-merger. "The merger between Saipem and Subsea7 will result in significant synergies, estimated at around 300 million euros per year," stated Alessandro Puliti, the incoming CEO of Saipem7.
Stakeholders have expressed strong support for the transaction, which is structured as a merger of equals, with share distribution being equal at 50-50 for the respective participants. Subsea7 shareholders will receive 6.688 shares of Saipem for each share they hold. Prior to completion of the merger, Subsea7 plans to distribute an extraordinary dividend of 450 million euros, underscoring the confidence both companies have in this strategic move.
Giancarlo Giorgetti, Minister of Economy and Finance, emphasized the importance of this agreement, commenting, "This agreement is a perfect example of how public support can add value to large industrial operations. With this operation, we create a global leader of great industrial and technological value.”
According to Dario Scannapieco, CEO of CDP, "The merger is set to create significant strengthened capabilities, enabling the firms to leverage their complementary strengths effectively. This merger is destined to establish Saipem7 as the leader of the energy services market, with adherence to operational excellence and technological advancement.”
The governance structure of Saipem7 will represent interests from the main shareholders—Eni and CDP Equity from Saipem, alongside Siem Industries from Subsea7—who collectively will hold approximately 29% of the equity. This collective governance approach ensures stability and strategic oversight as Saipem7 launches its operations.
Both companies expect the merger to close by the latter half of 2026, following necessary regulatory approvals. The anticipated completion sets the stage for Saipem7 to capitalize on growing opportunities within the oil & gas market and sectors transitioning to renewable energies.
This visionary merger aims to optimize resources across both firms, enhancing product offerings and operational efficiencies. Analysts anticipate this merger as a pivotal moment for both organizations amid global shifts toward sustainable and diversified energy solutions.
The market's initial reaction reflects optimism, with Saipem shares showing considerable gains following the announcement. The enthusiasm was mirrored by Subsea7, which also experienced significant stock price jumps on the Oslo Stock Exchange. Such responses from investors are indicative of their belief in the merger's potential to deliver long-term shareholder value.
Looking forward, the creation of Saipem7 not only marks the union of two reputable firms but also signals strong collaboration within the energy sector to meet the growing demands for innovation and efficiency. This transformational shift is expected to solidify both companies' standing and allow them to navigate the challenges and opportunities within the rapidly changing energy market, particularly as focus shifts to greener alternatives.
With industry leaders committed to steering Saipem7 strategically, the newly formed entity is set to emerge as significant, fostering growth and establishing itself as the forerunner of energy services. The introduction of this combined powerhouse promises to create enhanced value not only for its shareholders but also for its global customer base seeking reliable and integrated energy solutions.