Acergy and subsea engineering and construction company, Subsea 7, will merge, creating a $5.4 billion entity, Financial Times reports. The Norwegian oil services company has acquired Subsea 7 for $2.5 billion, adds Bloomberg.

The new company will be called Subsea 7 and will be headed by Acergy CEO Jean Cahuzac, with Kristian Siem as Chairman. The merger is expected to be completed by the end of 2010, or the first quarter of 2011. Citigroup, Deutsche Bank and DnB NOR were appointed as advisers to Subsea and Rothschild advised Acergy.

Click here for the story from Financial Times.

Click here for additional coverage from Bloomberg.