Market Promotes Merger Between Saipem and Subsea7

The market is promoting the merger between Saipem and the Norwegian Subsea7 decided yesterday with the resolutions of the boards of directors of Cdp, Eni and the Scandinavian parent company Siem Industries . At the opening of Piazza Affari, Saipem's stock failed to make a price due to excess demand and then settled, the new reference is in exchange for which the shareholders of Subsea7 will receive 6.688 Saipem shares for each share owned and an extraordinary dividend of 450 million distributed by the Norwegians before the merger. According to the intentions of the shareholders, the merger will not lead to the launch of a takeover bid on the free float of the two companies.

Managers' comment

The agreement with Saipem "represents a milestone in the history of our company for Subsea7", says the president of Subsea7, Kristian Siem , in the conference call to present the merger that will create a global leader worth 20 billion. "This combination gives us a much more harmonious dimension with regards to projects in the oil & gas sector for the future. The two companies are "highly complementary in terms of activities and geographical presence" and together they will form a "global leader in energy services through integration along the entire value chain", echoes the CEO of Saipem, Alessandro Puliti, recalling some numbers of the operation. "Saipem7 - he explains - will have a workforce of over 45 thousand people, present in over 60 countries around the world with a strong focus on innovation and technology".

The new entity will be able to distribute to shareholders “at least 40% of the available cash (free cash flow)”, Puliti continues in response to the analysts. According to the agreements, in terms of dividends, the parties have agreed that Saipem and Subsea7 will be able to make up to 350 million dollars each in the form of dividends during 2025. For Saipem President Elisabetta Serafin , the merger “could represent a strong advantage for all shareholders”. A point also reiterated by Subsea7 CEO John Evans , who speaks of “an attractive return for shareholders”, because “the two companies are very complementary, our fleets are very compatible and so is the geographical positioning”.

Analysts speak out

“Based on the synergies and benefits arising from the merger – Equita analysts assess – we estimate a value creation for Saipem of 4% to 13% of the market capitalization”. “We believe that the operation has a solid strategic logic – Intermonte notes -. The expertise in offshore engineering and construction and the asset base of the two companies would be complementary, generating significant synergies and value creation”

Leader in Offshore Engineering

A new global giant in the energy services sector will be born, provisionally called "Saipem7". The new entity will have a total order book of 43 billion euros and estimated revenues of around 20 billion euros. Eni and Cdp Equity, Saipem's reference shareholders, will together hold approximately 17% of the new company. The closing of the transaction is expected for the second half of 2026. The Minister of Economy Giancarlo Giorgetti expressed satisfaction, stressing that this merger will create a world leader based in Italy , strengthening the country's positioning in the energy and offshore sector, including offshore wind projects on fixed foundations. This strategic move is seen as a step to consolidate Saipem's position in a competitive market, leveraging synergies with Subsea 7 to address the growing demands for sustainable energy infrastructure.

Joint governance

Eni, Cdp Equity and Siem Industries have signed a Memorandum of Understanding that includes the creation of a shareholders' agreement. These shareholders, with approximately 29% of the capital, will appoint the majority of the Board of Directors. For the management, Alessandro Puliti , current CEO of Saipem, should also become CEO of Saipem7; John Evans , current CEO of Subsea 7, will lead the Offshore Engineering & Construction business, which will include the activities of Subsea 7 and part of those of Saipem. The chairman will be designated by Siem Industries.