Italian oil engineering company Saipem says it has reached an agreement with Norwegian submarine oil services specialist Subsea 7 for a possible merger to create a “global leader in energy services.”
This union is expected to create a European oil services giant, with a combined revenue of approximately €20 billion and an order backlog of €43 billion, according to a statement issued on Sunday evening by Saipem.
Subsea 7 shareholders will receive 6.688 Saipem shares for each of their shares, says the Italian group, which is absorbing its Norwegian rival.
Synergies of about €300 million per year are expected from the third year following the merger’s completion. Integration costs are estimated at €270 million.
Shareholders of Saipem and Subsea 7 will own 50% each of the combined company’s capital, the Italian group added.
The shares of the new entity, to be named Saipem7, will be listed on both the Milan and Oslo stock exchanges. The transaction is expected to be finalised in the second half of 2026.
Saipem and Subsea 7 had discussed a potential merger in 2019, but those negotiations did not result in a deal.
Italian oil giant Eni, Saipem’s largest shareholder with a 21.19% stake, and the Italian state investment fund CDP, which controls 12.82%, both approved the merger on Sunday in their respective board meetings.
