Saipem and Subsea7 said Sunday they have reached an agreement in principle to merge, creating a global energy services giant with a combined backlog of 43 billion euros ($46.4 billion).   

The companies said in a statement that the merger, expected to be completed in the second half of 2026, would create a company named Saipem7 with approximately 45,000 employees. 

The combined company is expected to generate about 20 billion euros ($21.5 billion) in revenue and more than 2 billion euros ($2.15 billion) in earnings before interest, taxes, depreciation and amortization.

Under the terms of the agreement, Subsea7 shareholders will receive 6.688 Saipem shares for each Subsea7 share held. Subsea7 will also distribute a 450 million euro ($485 million) extraordinary dividend prior to the completion of the merger. Shareholders of both companies will each own 50% of the combined entity.  

The companies said they expect to achieve approximately 300 million euros ($323 million) in annual synergies within three years of the merger’s completion, with one-time costs of about 270 million euros ($291 million) to achieve those synergies.   

Saipem7 will also be listed on both the Milan and Oslo stock exchanges.   

Siem Industries, the reference shareholder of Subsea7, and Eni and CDP Equity, the reference shareholders of Saipem, have expressed their support for the merger.   

The companies said Alessandro Puliti is expected to be appointed CEO of Saipem7, and John Evans is expected to be CEO of the combined company's offshore business, which will include all of Subsea7 and Saipem’s offshore engineering and construction activities.   

CDP Equity, Eni and Siem Industries have also agreed to the terms of a shareholder’s agreement, which will take effect upon completion of the merger. Siem Industries will designate the combined company’s chairman, while CDP Equity and Eni will designate the CEO.   

The companies said the merger will create a “global leader in energy services” with complementary geographical footprints, competencies and capabilities, vessel fleets, and technologies.