Subsea 7 has announced that the tribunal of Brazil’s Conselho Administrativo de Defesa Econômica (CADE) has approved the proposed combination of Subsea7 and Saipem to create Saipem7. At the same time, the company plans to sell its heavy transportation business, part of Seaway7, to HEA Energy.
Subsea7 and Saipem have committed to divest Seven Borealis to address the competition concerns raised by CADE’s tribunal during its review. The commitment includes specific provisions to ensure continuity in the execution of the existing project backlog. Seven Borealis is a pipelay and heavy-lift vessel capable of operating in the world’s harshest environments. The vessel measures 182 x 46 metres and was built in 2012.
The divestiture is not expected to materially affect the strategic rationale of the proposed combination, and the synergies previously announced are confirmed. Saipem7 will have a combined backlog of EUR 43 billion, revenue of approximately EUR 20 billion and EBITDA in excess of EUR 2 billion. The company will employ over 45,000 people, including more than 9000 engineers and project managers.
Subsea7 and Saipem state they remain committed to the proposed combination and will continue to work constructively with the relevant authorities to secure satisfaction (or, where applicable, waiver) of the remaining conditions set out in the common merger plan approved by the shareholders of both companies.
Also read: Saipem en Subsea7 reveal merger plans
Seaway7’s heavy transportation to HEA Energy
Seaway7, part of Subsea7 Group, wants to sell its heavy transportation department to HEA Energy. This transaction is still subject to closing conditions, including any applicable regulatory approvals, with completion expected in the first half 2027. The commercial terms including cash consideration are confidential at this time.
The sale includes six open deck semi-submersible heavy transportation vessels of which five are owned and one is a chartered from a third-party. The five owned vessels in Seaway7’s heavy transportation fleet are the Seaway Eagle, Seaway Falcon, Seaway Hawk, Seaway Osprey and Seaway Albatross. The Seaway Swan is the chartered vessel. They are suitable for the transportation of offshore wind foundations, offshore modules and all other oversized floating and non-floating cargoes.
The transaction constitutes the permitted business divestment referenced in the merger agreement with Saipem and will trigger a special dividend of EUR 105 million.
Picture: One of the six sem-submersible vessels Seaway7 plans to sell to HEA Energy, the Seaway Falcon (photo Flying Focus).
Also read: Subsea7 lands major contract offshore Norway
