EU Poised to Launch In-Depth Antitrust Probe Into Saipem-Subsea7 Merger

According to Reuters, officials in Brussels are expected to move the transaction into a Phase II antitrust review after preliminary assessments raised concerns that the deal could significantly reduce competition in several offshore energy service markets.

The European Commission’s initial review period is scheduled to conclude on July 22. People familiar with the matter told Reuters that remedies sufficient to avoid a detailed investigation are considered unlikely at this stage.

The proposed combination would create a major global offshore engineering and subsea services provider with extensive capabilities spanning project engineering, offshore construction, drilling activities and the installation of subsea infrastructure for oil and gas developments.

Competition authorities are reportedly examining the overlap between the companies’ fleets and service offerings. Both companies operate specialized vessels used in offshore construction and subsea installation projects, raising questions about whether customers could face fewer alternatives for large-scale offshore developments.

Potential remedies under consideration could include asset sales or reductions in operational capacity, Reuters reported, citing sources familiar with the discussions. Neither the European Commission nor Saipem has publicly commented on the anticipated investigation.

The merger, originally announced in 2025, would combine two major players in offshore energy services into a new entity expected to operate under the name “Saipem7.” At the time of the announcement, the companies said the combined business would have a backlog of approximately €43 billion, annual revenue of around €21 billion and earnings before interest, taxes, depreciation and amortization exceeding €2 billion. The companies also projected annual synergies of roughly €300 million within three years of completion.

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Regulators in several jurisdictions have already examined the transaction, reflecting growing international concern over consolidation in highly specialized energy service markets.

Brazil’s antitrust authority approved the transaction without conditions last month. However, that decision subsequently prompted legal challenges from companies opposed to the merger. Reuters previously reported that firms including Exxon Mobil, Petrobras and oilfield technology company TechnipFMC had urged Brazilian authorities to intervene, arguing that the combination could increase concentration in subsea engineering and SURF services — subsea umbilicals, risers and flowlines — and potentially lead to higher costs for offshore projects.

Australia has also intensified its scrutiny of the transaction. The Australian Competition and Consumer Commission recently initiated a more detailed review after expressing concerns that the merger could lessen competition in critical offshore oil and gas services.

The European Commission formally received notification of the transaction in June under the EU Merger Regulation, according to official filings published in the EU’s register of concentrations.

The companies serve largely complementary customer bases. Saipem’s clients include major national energy companies such as Saudi Aramco, QatarEnergy and Abu Dhabi National Oil Company (ADNOC), while Subsea7 has significant relationships with international oil companies including BP and Equinor.

EU merger investigations frequently focus on whether transactions could reduce customer choice, increase pricing power or create barriers to entry in concentrated industrial markets. A Phase II investigation would give the Commission additional time to assess market shares, solicit feedback from industry participants and evaluate whether any remedies would be necessary to preserve competition.

The transaction remains subject to regulatory approvals in multiple jurisdictions and is currently expected to close during the second half of 2026, pending the outcome of ongoing reviews and any conditions imposed by competition authorities.