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The rationale for a merger between Italy's Saipem and Norway's Subsea 7 is to combine the fleets of the two energy services companies to service customers quicker and cut costs, the CEO of the Italian group said on Wednesday.

Italian offshore services firm Saipem plans to merge with Norwegian rival Subsea7 in an all-share deal valued at $4.6 million, the companies announced. The combined company, to be named Saipem7, would

Energy services and drilling specialists Saipem SpA and Subsea7 SA agreed to combine their businesses as consolidation in the sector picks up after years of sluggish activity.

Italian energy contractor Saipem, which has agreed to merge with Norwegian rival Subsea 7, said on Tuesday it would resume paying a dividend after a four-year break. The group said it would pay 333 million euros ($350 million) in dividends this year.

Saipem and its Norwegian rival did not disclose the financial terms of the deal, which, according to Reuters, is valued at around $4.63bn.

Saipem and Subsea7 have agreed to merge, creating an offshore energy services company called Saipem7 with annual revenue of approximately20 billion euros (US$21 billion) and a backlog of 43 billion euros (US$45.

Saipem ( OTCPK:SAPMF) ( OTCPK:SAPMY) said Sunday it agreed to merge with rival oilfield services company Subsea7 ( OTCPK:SUBCY) ( OTCPK:ACGYF) in an all-stock deal valued at ~$4.63B.

Italy’s Saipem and Norway’s Subsea7 have reached an agreement to merge the two companies, to create an industry leader in global energy services.

A merger between Italian eng'neering giant Saipem and Norwegian undersea engineering multinational Subsea 7 shows the solidity of the 'Italian System' and created the world's leading energy engineering company,