The planned merger of Italian contractor Saipem and Luxembourg-incorporated Subsea7 could be pushed into an in-depth EU antitrust investigation over competition in offshore energy services, according to Reuters.
The European Commission is expected to decide whether to open a Phase II review when its preliminary assessment ends on 22 July. The companies could offer remedies, potentially including capacity reductions or vessel disposals, but no formal Phase II decision has been published.
The Commission’s register continues to list case M.12236, Saipem/Subsea7, as an ongoing review. The transaction was formally notified on 16 June. Regulators are examining the companies’ overlap in offshore engineering and construction, including subsea umbilicals, risers and flowlines linking subsea wells and production equipment with surface facilities.
Australia’s competition regulator moved the deal into Phase II on 3 July over concerns that it could weaken competition in subsea infrastructure and related services for offshore oil and gas projects. No final conclusion has been reached.
Brazil’s CADE cleared the combination without restrictions in June after ExxonMobil, Petrobras and TotalEnergies raised concerns about the market power of the enlarged contractor.
Saipem and Subsea7 signed a binding merger agreement in July 2025, five months after announcing the transaction. The proposed Saipem7 would have annual revenue of about €21bn ($24.0bn), EBITDA of more than €2bn ($2.29bn), free cash flow above €800m ($914m) and a combined order backlog of €43bn ($49.1bn).
The group would operate more than 60 construction vessels and employ about 44,000 people, including more than 9,000 engineers and project managers. Shareholders of Saipem and Subsea7 would each own 50%. Subsea7 shareholders would receive 6.688 new Saipem shares for each Subsea7 share and an extraordinary cash dividend of €450m ($514m) before completion. Saipem7 would be incorporated in Italy and headquartered in Milan. Completion remains targeted for the second half of 2026, subject to regulatory approvals.
Saipem is an Italian engineering and construction group active in offshore and onshore energy and infrastructure projects in more than 50 countries.
Subsea7 is a Luxembourg-incorporated offshore services group providing engineering, construction, installation, maintenance and decommissioning services, as well as infrastructure for offshore wind developments.