From the union between SaipemItalian engineering company specialized in the oil sector, and the Norwegian subsea7Norwegian company active in the supply of offshore projects and services for the energy sector, a 20 billion giant of turnover.
An operation greeted with a lot of satisfaction by the Minister of Economy Giancarlo Giorgettiwhich comments on “agreement for the merger of Saipem with the Norwegian Subsea 7 represents a perfect example of how the public can enhance imposing industrial operations. With this merger, in fact, a world giant of the energy engineering sector is built but based in Italy, in Milan “.
The terms of the deal
The two companies have signed a Memorandum of Undersanding (Mou) aimed at one Combination that would give life to a global leader in the Energy Services sector. The company born from the merger It will be called saipem7 And he will have an aggregate order portfolio of 43 billion euros, revenues for around 20 billion euros and Ebitda of over 2 billion euros. Will count over 45,000 peopleincluding more than 9,000 engineers and project managers, and will be able to count on a strong complementarity in terms of geographical presence, skills and skills, naval fleets and technologies, at the service of a global customer base.
The merger is expected to generate significant value for Saipem and Subsea7 shareholders and are expected Annual synergies equal to about 300 million Euro from the third year following the completion of the merger, with one-off costs connected to obtaining these synergies of approximately 270 million euros.
It is a Equal merger: Saipem and Subsea7 shareholders will cleanse the share capital of the Combined Company in equal extent (in 50-50 ratio.
Subsea7 shareholders they will receive 6,688 Saipem actions For each subsea7 action detained, while the Norwegian company will distribute a extraordinary dividend of 450 million euros immediately before the completion of the operation.
CDP and Eni ready to support the operation
Cdp Equity, Eni and Siem Industries have signed a separate memorandum of Undersanding, in which they are committed to supporting the proposed combination and the terms of a Parasocial pact which will be effective from completing it.
In this area it is expected that the President of the Board of Directors of the Combined Company both designated by Siem Industries (reference shareholder of subsea7), while The CEO both designated from Cdp Equity and Eni.
It was also expected that Alessandro Puliti will be appointed to of the new company, while it is currently planned that John Evans is appointed CEO of the Company that will manage the offshore business of the new group. The Combined Company will be divided into four business:
- Offshore Engineering & Construction
- Onshore Engineering & Construction
- Sustainable Infrastructures
- Offshore Drilling.
The Business Offshore Engineering & Construction will be incorporated into a company with its own operational autonomy, called Subsea7 and operating with the “Subsea7 – Saipem7 Company” brand and placed under the guidance of Evans.
The new company will have registered office in Milan and his actions they would be listed both on Milan stock exchange that on that of Oslo. Siem Industries would be the owner of about 11.9% of the capital, while Eni and Cdp Equity would have 10.6% and 6.4% of the capital respectively.
“With this operation we create a global leader of great industrial and technological value,” commented the CEO of Eni, Claudio Descalziremembering that “Saipem over the past few years has taken a path of continuous improvement of the operational and financial performances that brought it to a position of excellence such as to be able to be the protagonist of this significant transformation”.
“Together with Eni we worked in harmony and successfully the improvement of a great industrial operation – commented the CEO of Cassa Depositi e Prestiti, Dario Scannapieco.
