Italian offshore services firm Saipem plans to merge with Norwegian rival Subsea7 in an all-share deal valued at $4.6 billion, the companies announced.
The combined company, to be named Saipem7, would have a combined backlog of €43 billion ($45.2 billion), revenue of approx. €20 billion ($21 billion) and EBITDA in excess of €2 billion ($2.1 billion), the companies said in a statement announcing the merger plan.
The companies said they are targeting a binding agreement by mid-2025 with completed merger expected in the second half of 2026. Saipem7 would be headquartered in Milan and have its shares listed on both the Milan and the Oslo stock exchanges.
The proposed deal is part of a growing consolidation trend in the oil and gas sector, as companies seek to reduce costs and shorten lead times for major offshore projects.
Leadership from the two companies said the merger would unlock synergies among the complementary businesses, which serve clients in offshore oil, gas, carbon capture and renewable energy.
The merger would achieve "expected annual synergies of approximately €300 million in the third year after completion, driven by fleet optimization, procurement, sales and marketing, and process efficiencies," the companies said in a statement.
Saipem7 would have a combined fleet of more than 60 construction vessels offering heavy lift, J-lay, S-lay and reel-lay rigid pipeline solutions, flexible pipe and umbilical lay services and wind turbine, foundation and cable lay installation capabilities in water depths ranging from shallow water to ultra-deepwater.
