The Italian newspaper La Repubblica, without citing any sources, reported that the Italian oil services firm Saipem was close to merging with its Norwegian competitor Subsea 7.

The paper did not provide any further financial information.

Several years ago, the Italian company controlled and owned by Eni, Italy's state-owned lender Cassa Depositi e Prestiti sat down with Subsea 7 to discuss a possible merger. However, negotiations failed.

Saipem refused to comment on the report published Sunday, and Subsea 7 didn't respond to an email request for comment.

La Repubblica reported that Eni and CDP will hold an extraordinary board meeting on Sunday in order to approve the plan.

Eni and CDP representatives were not available for immediate comment.

The newspaper said that the proposed merger is likely to be one of equals.

(source: Reuters)