MILAN (Reuters) – Italian oil services company Saipem SPMI.MI said on Sunday that it will merge with Norwegian rival Subsea 7 in a deal valued at about $4.63 billion.
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 2 billion euros, they said.
Saipem and Subsea7 shareholders will own 50% 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.
Italian newspaper La Repubblica first reported the deal on Sunday.
($1 = 0.9558 euros)
(Reporting by Devika Nair, Rhea Rose Abraham and Sara Rossi, additional reporting by Francesca Landini and Giuseppe Fonte; Editing by Deepa Babington and Stephen Coates)
