Italian energy engineering company Saipem and Norwegian firm Subsea 7 have announced a merger agreement to form a global energy engineering giant, Saipem 7. The combined entity is expected to generate annual revenues of €20 billion and hold an order backlog of €43 billion. The merger will involve Subsea 7 shareholders receiving 6.688 Saipem shares for each of their existing shares, with the new company equally owned by shareholders of both firms. The deal is projected to create annual synergies of €300 million starting three years after completion, with integration costs estimated at €270 million. Subsea 7 shareholders will also receive a €450 million dividend payout prior to the merger. The headquarters of Saipem 7 will be located in Italy, and the company will be listed on both the Milan and Oslo stock exchanges. Saipem will appoint Alessandro Puliti as CEO, while Subsea 7 will nominate the chairman. The Italian government, through its 17% combined stake in Saipem via Eni and CDP, will retain significant influence in the new entity's governance. This strategic move is driven by Saipem's fleet expansion plans and aims to consolidate resources and expertise in the offshore energy services sector. The merger is expected to be finalized in the second half of 2026, with a projected market capitalization of €9-10 billion. Christian Siem, a key stakeholder in Subsea 7, is also involved in the deal.