Wedoany.com Report-Feb 25, Saipem and Subsea7 have signed a memorandum of understanding (MoU) to pursue a potential merger, creating a combined company to be named Saipem7. The agreement, announced recently, aims to unite the two firms, with the transaction valued at approximately $4.6 billion. The merger is projected to be finalized in the second half of 2026, pending necessary approvals and conditions. Once completed, the new entity expects to generate annual synergies of about €300 million by the third year.

The collaboration will blend the strengths of both companies, leveraging their complementary geographic presence, skills, and resources. Saipem, based in Italy, and Subsea7, headquartered in the United Kingdom, bring together expertise in offshore energy services, including engineering, construction, and vessel operations. This merger will combine their fleets and technological capabilities, enhancing service offerings for clients worldwide.

Under the terms of the MoU, shareholders of Saipem and Subsea7 will each hold a 50% stake in Saipem7’s share capital. The equal ownership reflects a balanced partnership designed to maximize value for both sets of investors. The companies stated that the merger will strengthen their market position and deliver efficiencies through streamlined operations and shared innovation.

A spokesperson from Saipem commented: "This merger represents a strategic step to enhance our global reach and operational capacity." Similarly, a Subsea7 representative said: "The combination of our complementary assets and expertise will create opportunities for growth and improved service delivery." These statements underline the mutual benefits anticipated from the deal.

The merger aligns with industry trends toward consolidation, aiming to address challenges in the offshore energy sector while maintaining competitiveness. The process remains subject to regulatory reviews and shareholder approval, with further updates expected as discussions progress. The estimated timeline and financial figures are based on current projections, ensuring accuracy as of the announcement.

This development positions Saipem7 to serve a broad client base across multiple regions, drawing on the established reputations of both firms. The focus remains on delivering sustainable value without disrupting existing operations during the transition period. Detailed plans for integration will emerge closer to the anticipated completion date in 2026.