Italian oil services company Saipem will merge with Norwegian rival Subsea 7 in a deal valued at about $4.63 billion, reports Reuters.
Saipem to merge with Subsea7
Subsea7 shareholders will receive 6.688 Saipem shares for each share they hold, the companies said in a statement. The combined company, to be renamed Saipem7, will have a “combined backlog” of 43 billion euros ($45 billion), revenue of about 20 billion euros and EBITDA over two billion euros, they said.
Saipem and Subsea7 shareholders will own 50 per cent each of the share capital of the combined company, the statement added.
The Italian company controlled by oil major Eni and Italian state lender Cassa Depositi e Prestiti held talks with Subsea 7 over a possible tie-up several years ago but did not reach an agreement.
Siem Industries, reference shareholder of Subsea7, as well as Eni and CDP Equity, reference shareholders of Saipem, signed a memorandum of understanding to provide full support to the transaction.
The transaction expects annual synergies of about 300 million euros to be achieved in the third year after completion, the statement added.
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Source: Reuters
