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Oil Industry Pushes Back Against Subsea7–Saipem Merger in Brazil

By  |  December 3, 2025

Oil producers in Brazil are joining forces to challenge the proposed merger of energy contractors Subsea7 and Saipem, according to Reuters. Brazil’s antitrust regulator, Cade, has requested additional information from the companies as part of its ongoing review, public documents cited by Reuters show.

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    The planned union would create a new entity called Saipem7. Industry group IBP argued in a filing that the combined company could gain enough market leverage to increase costs, slow project timelines and pressure major clients into restrictive long-term contracts, per Reuters. Weeks after receiving IBP’s comments, Cade told both firms it needed more data to properly evaluate the deal.

    Subsea7 and Saipem stated in separate responses to Reuters that they are cooperating with Cade and other regulators in accordance with the merger process initiated in July. Cade pointed Reuters to public filings for further details, while IBP declined to comment.

    Related: The Political Afterlife of Price Control in Brazilian Competition Law

    If completed, the merger would result in a company with an order backlog worth 43 billion euros ($49.9 billion), about 21 billion euros in annual revenue and more than 2 billion euros in core earnings, according to the companies’ earlier announcement referenced by Reuters. TotalEnergies submitted its own study warning that no mitigation measures could fully address competitive risks in subsea umbilicals, risers and flowlines — key SURF project infrastructure. Exxon Mobil also expressed concerns, Reuters reported.

    TotalEnergies argued that Saipem7 would control eight of the twelve global vessels capable of handling certain deepwater or severe-weather SURF operations. It also highlighted risks of dominance in emerging segments such as decommissioning and offshore wind. Reuters noted that Total did not respond to a request for comment.

    Subsea7 Chief Executive John Evans said during a Nov. 20 earnings call that he expects the transaction to close in the second half of 2026, explaining that Cade was following “the steps that we had expected it to follow,” according to Reuters.

    The antitrust review was originally requested in September by Exxon, Petrobras and TechnipFMC. Those companies urged regulators to block the merger or require asset divestments to protect market competition in Brazil, per Reuters. Cade has also consulted with officials in the United States, Mozambique and the United Kingdom, the latter having already approved the deal.

    Source: Reuters