I’ve managed to fix this issue.
It turned out not to be with Woocommerce, but when it sends out mails it attaches a PDF to the e-mails and wpMandrill uses a function called set_magic_quotes_runtime that is removed from PHP 7.
So, to fix this you need to remove or comment out the following lines from /wp-content/plugins/wpmandrill/lib/mandrill.class.php:
if ( !function_exists(‘set_magic_quotes’) ) {
function set_magic_quotes($value) { return true;}
}
if (strnatcmp(phpversion(),’6′) >= 0) {
$magic_quotes = get_magic_quotes_runtime();
set_magic_quotes_runtime(0);
}
if (strnatcmp(phpversion(),’6′) >= 0) set_magic_quotes_runtime($magic_quotes);