Subsea7 and Saipem Agree to Bind Merger, Name New Venture Saipem7
Saipem and Subsea7 Merge to Form Global Energy Leader, Saipem7
In a significant move for the energy services sector, Italian company Saipem and Norwegian firm Subsea7 have announced plans to merge, creating a new powerhouse named Saipem7. Here's a closer look at the structure, financials, and key details of the merger.
Structure and Ownership
The merger will take the form of a cross-border merger, with Subsea7 being merged into Saipem. This will result in a 50-50% ownership split between Saipem and Subsea7 shareholders. The Offshore Engineering & Construction business will operate under an autonomously managed company, fully owned by Saipem7, named Subsea7, a Saipem7 Company. This new entity will encompass all of Subsea7’s businesses and Saipem’s Asset Based Services, including Offshore Wind.
Financials
Saipem7 is projected to generate approximately €21 billion (or about USD 22.7 billion) in revenue. The company anticipates an EBITDA of over €2 billion (or about USD 2.16 billion). Saipem7 is expected to produce more than €800 million (or about USD 864 million) in free cash flow annually. The merged company will have a combined backlog of approximately €43 billion (or about USD 46.44 billion).
Headquarters and Listing
Saipem7 will maintain its registered office in Italy with its headquarters in Milan. The company will be listed on both the Milan and Oslo stock exchanges.
Expanding Portfolio and Collaborations
Saipem has been involved in the construction of multiple website farms for years, using vessels like Saipem 3000 and Saipem 7000 for the installation of foundations and substations. Seaway7, a company taken over by Subsea7 in 2017, provides website farm construction services. Saipem7 will be structured as four businesses: Offshore Engineering & Construction, Onshore Engineering & Construction, Sustainable Infrastructures, and Drilling Offshore.
In 2023, Saipem and Subsea7 entered into a commercial collaboration agreement to jointly identify, bid, and execute fixed website projects. This collaboration extends to offshore projects, with both companies currently working together. Saipem recently unveiled its own semi-submersible floating wind foundation technology, named Star1, which was selected for two floating wind projects planned to be built in Italy.
The merger is expected to be completed in the second half of 2026, positioning Saipem7 as a significant player in the global energy services sector, with a diversified backlog and robust financial profile.
- The merged entity, Saipem7, is projected to generate financial gains, with an anticipated revenue of around €21 billion, an EBITDA over €2 billion, and more than €800 million in annual free cash flow.
- Saipem7 will expand its portfolio through collaborations, such as the joint venture with Subsea7 in 2023 to work on fixed website projects and offshore projects, and Saipem's recently unveiled semi-submersible floating wind foundation technology, Star1.
- In the market and finance industry, the merger of Saipem and Subsea7 is significant, as it aims to create a global energy leader, with a diversified backlog, a robust financial profile, and a presence on both the Milan and Oslo stock exchanges.
