Italy’s Saipem and Norway’s Subsea7 announced on Sunday that they have reached an agreement in principle and signed an MoU for the possible merger of the two companies.
The combined entity will be named Saipem7 and will have revenues of approximately EUR 20 billion and a backlog of EUR 43 billion. Saipem and Subsea7 shareholders will own 50% of the share capital of the new company, which will be listed on the Milan and Oslo stock exchanges.
Saipem7 will be structured around four business lines: Offshore Engineering & Construction, Onshore Engineering & Construction, Sustainable Infrastructures and Offshore Drilling. It will have more than 9,000 engineers and project managers in more than 60 countries and a combined fleet of more than 60 construction vessels with shallow-water and deepwater capabilities, including heavy lift, J-lay, S-lay and reel-lay rigid pipeline solutions, flexible pipe and umbilical lay services.
The companies’ reference shareholders – CDP Equity and Eni for Saipem and Siem Industries for Subsea7 – have signed separate MoUs in support of the merger and outlining the future management of the combined company. It is expected that the combined entity’s chairman will be selected by Siem Industries and its CEO by CDP Equity and Eni.
Per the announcement, Saipem’s Alessandro Puliti will be appointed CEO of the combined company, and Subsea7’s John Evans will be appointed CEO of its offshore business. Following the transaction, Siem Industries will own approximately 11.9% of the combined company, while Eni and CDP Equity will own around 10.6% and 6.4%, respectively.
A binding agreement is conditional on the successful completion of due diligence by the parties, and completion of the merger is subject to customary conditions precedent and regulatory approvals. The companies expect a board-approved merger agreement by mid-2025 and completion of the deal by H2 2026.
Source: theenergyyear.com