Italy’s engineering, drilling, and construction services giant Saipem has signed a binding agreement on the terms and conditions of its proposed merger with global energy player Subsea7.
Since the management of both companies believes the merger will create a global leader in energy services, especially considering the growing size of projects, the duo has decided to take a step forward and sign a binding deal for its proposed business combination . The merger was announced in February, when a memorandum of understanding (MoU) was signed.
Renamed Saipem7 , the new company will be created through an EU cross-border statutory merger, carried out by absorbing Subsea7 into Saipem, with the latter to be renamed Saipem7.
The new company will remain incorporated in Italy and headquartered in Milan, with shares listed on both the Milan and Oslo stock exchanges. The would-be partners expect the proposed combination to be finalized in the second half of 2026.
Siem Industries, reference shareholder of Subsea7, and Eni and CDP Equity, reference shareholders of Saipem, have signed a shareholders’ agreement, undertaking, among other things, to vote in favor of the proposed business combination at their respective general meetings.
Wishing to ensure a balanced leadership and governance structure, the companies have decided that Saipem7’s CEO will be named by Eni and CDP Equity, and Saipem7’s Chairman of the Board of Directors will be designated by Siem Industries.
The current plan is for Kristian Siem to be appointed as Chairman of the Board of Directors of Saipem7 and Alessandro Puliti as its CEO. Alessandro Puliti will also be appointed as Chairman, and John Evans as CEO of the company that will manage the Offshore Engineering & Construction business of Saipem7.
This company, branded as “Subsea7, a Saipem7 Company,” will be incorporated in the UK and headquartered in London. It will comprise Subsea7’s entire businesses and Saipem’s Asset Based Services business, including Offshore Wind.
In addition to the Offshore Engineering & Construction business to be managed by Subsea7, the new company will comprise Sustainable Infrastructures, Drilling Offshore, and Onshore Engineering & Construction businesses, for a total of four.
The completion of the proposed combination is subject to customary conditions precedent for a transaction of this nature, including the approval from the Italian Government. Shareholders of Saipem and Subsea7 also need to approve it at their respective extraordinary general meetings, both of which will take place on September 25, 2025.
Apart from merger plans, Saipem has been busy with oil and gas developments. Its drillship, Saipem 1000, was used by Eni to drill the Zohr 6 well offshore Egypt. Thanks to this, approximately 60 million cubic feet per day of natural gas was added to the current production rates.
Meanwhile, Subsea7 won a contract with Equinor through its joint venture with OneSubsea, Subsea Integration Alliance (SIA). Thanks to the deal, SIA has been tasked with the development of a concept study for Equinor’s Bacalhau Phase 2 project offshore Brazil.