Saipem Explores Merger with Subsea7, Forming New Giant Saipem7
Deal News | Feb 24, 2025 | Finance Community IT - 1 Corporate M&A
Eni and CDP Equity, principal shareholders of Saipem, have signed a memorandum of understanding with Siem Industries, the primary shareholder of Norway's Subsea7, to form a new company named Saipem7. This merger is structured as a 50-50 partnership and aims to combine Saipem and Subsea7 into a colossal entity with a combined order portfolio worth 43 billion euros, revenues estimated at approximately 20 billion euros, and an EBITDA exceeding 2 billion euros. The completion of this transaction is anticipated by mid-2026. Intesa Sanpaolo's IMI CIB Division served as a financial advisor to Eni, while BNP Paribas advised CDP Equity. Other financial and legal advisors involved include Goldman Sachs, Deutsche Bank AG, Clifford Chance, and Advokatfirmaet Thommessen for Saipem, and Kirk Lovegrove & Company, Freshfields, Elvinger Hoss Prussen, and Advokatfirmaet Wiersholm for Subsea7. The strategic merger will create a dominant force in the Subsea and Offshore Engineering & Construction sectors, leveraging geographical and clientele complementarity to enhance product offerings and fleet utilization, thus positioning the combined entity to capitalize on opportunities in the evolving oil & gas market and energy transition. Alessandro Puliti, Saipem's CEO, is slated to become the CEO of the combined company, with John Evans managing the offshore business.
Sectors
- Oil & Gas
- Engineering & Construction
Geography
- Italy – Saipem maintains its corporate headquarters and listing in Italy, and Eni and CDP Equity are Italian entities, making Italy a significant geography for the merger.
- Norway – Subsea7 is a Norwegian company, and the merged entity, Saipem7, will also be listed in Norway, highlighting Norway's relevance in the merger.
Industry
- Oil & Gas – The merger between Saipem and Subsea7 is situated within the Oil & Gas industry, leveraging their existing strengths to form a stronger entity positioned to adapt to market changes.
- Engineering & Construction – Both companies operate significantly in offshore engineering and construction, making this a pertinent industry classification for the merger.
Financials
- 43 billion euros – The combined order portfolio of the new company, Saipem7.
- 20 billion euros – Estimated annual revenues for Saipem7.
- 2 billion euros – Expected EBITDA for the new entity Saipem7.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Saipem | Target company | Company | A leading oilfield services company involved in engineering and construction, particularly in offshore projects. |
| Eni | Selling company | Company | An Italian oil and gas company that holds a significant stake in Saipem. |
| CDP Equity | Selling company | Company | An investment company focused on supporting strategic Italian businesses, also a stakeholder in Saipem. |
| Siem Industries | Selling company | Company | A Norwegian investment company serving as the reference shareholder of Subsea7. |
| Subsea7 | Bidding company | Company | A global leader in the delivery of offshore projects and services for the energy industry. |
| Intesa Sanpaolo – Divisione IMI CIB | Financial advisor | Company | Provided financial advisory services to Eni during the transaction. |
| BNP Paribas | Financial advisor | Company | Served as the sole financial advisor to CDP Equity for the merger. |
| Goldman Sachs | Financial advisor | Company | Provided advisory services to Saipem in the merger deal. |
| Deutsche Bank AG | Financial advisor | Company | Involved as a financial advisor to Saipem. |
| Clifford Chance | Legal advisor | Company | Provided legal advisory services to Saipem. |
| Advokatfirmaet Thommessen | Legal advisor | Company | Provided legal advisory services to Saipem. |
| Kirk Lovegrove & Company | Financial advisor | Company | Advised Subsea7 on the financial aspects of the merger. |
| Freshfields | Legal advisor | Company | Served as one of the legal advisors for Subsea7. |
| Elvinger Hoss Prussen | Legal advisor | Company | Provided legal counsel to Subsea7. |
| Advokatfirmaet Wiersholm | Legal advisor | Company | Gave legal advice on the merger to Subsea7. |