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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 energy-services provider Saipem will merge with Norwegian rival Subsea7 creating a company focused on drilling, engineering and construction.

Saipem's offshore business is performing well, with significant order intake and better margins. Read more about the Subsea 7 merger.

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.

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