The European regulator plans to launch an in-depth investigation into the alleged merger of Italy's Saipem SpA and Norway's Subsea7 in order to strengthen control over one of the largest energy sector consolidation projects. This is reported in the press release of the EC.
The EC's initial review period is scheduled for July 22. At the same time, the Australian regulator (ACCC) recently initiated a more detailed review, taking into account concerns that the merger could weaken competition in several offshore oilfield services markets.
In June, the Brazilian antitrust authority CADE agreed to merge Saipem and Subsea7 without any conditions. However, a number of large oil and gas companies, including Exxon Mobil Corp. (ExxonMobil), Brazilian Petroleo Brasileiro SA (Petrobras) and multinational contractor TechnipFMC Plc sent an appeal to CADE with a request to block the deal.
From the companies' point of view, the deal will have a significant negative impact on competition in the field of oilfield services, lead to higher prices, limiting the choice of supplier in the deepwater pipeline market, and virtually exclude competitors from participating in Brazilian government tenders, since 47% of the total number of vessels available for contract servicing belong to Saipem and Subsea 7.
Potential remedies may include asset sales or production capacity reductions. Saipem's clients include major national energy companies (Saudi Aramco, QatarEnergy and ADNOC), and Subsea7 cooperates with international oil companies, including BP and Equinor.
The Italian government approved the merger on September 23, 2025. Saipem and the Norwegian Subsea7, provided that Saipem, in which the state owns 13%, will prioritize Italy's energy infrastructure and maintain all activities that are considered strategically important for the country.
In February 2025, Saipem and Subsea7 reached an agreement to combine assets in a deal worth more than $4.6 billion at a 50/50 ratio. The revenue of the new company called Saipem7 may amount to 25 billion euros. The headquarters of the combined company will be located in Milan (Italy) with an operational office in London (England) and a staff of 45,000 employees.
Shareholders of Saipem and Subsea7 are expected to vote for the merger at extraordinary meetings of the companies on September 24. The transaction is expected to be completed in the second half of 2026. Saipem7 shares will be traded on the Milan and Oslo stock exchanges.
Subsea7 is a Norwegian offshore energy services company. The company is engaged in underwater engineering and the construction of underwater facilities in the marine energy sector. The headquarters is located in Oslo (Norway) with an office in the UK. The market value of Subsea 7 is $6.1 billion.
Saipem is one of the leading contracting companies in the oil and gas industry, particularly in the design, construction and operation of complex infrastructure and installations. The headquarters is located in the suburbs of Milan (Italy) with offices in 70 countries. The market value is $5.5 billion.
Read our Telegram channel "Mergers and Acquisitions. AK&M».
Our channel at MAX is "Mergers and Acquisitions. AK&M».
