EU set to launch in-depth antitrust review of Saipem-Subsea 7 merger

14:15

By: Sahili Aya

EU set to launch in-depth antitrust review of Saipem-Subsea 7 merger

The proposed merger between Italian energy engineering group Saipem and Norway's Subsea 7 is expected to enter an in-depth European Union antitrust investigation, as regulators examine whether the transaction could reduce competition in the offshore energy services market.

People familiar with the matter indicated that the European Commission is preparing to open a Phase II review, reflecting concerns that the combination of the two companies could significantly reshape competition across several strategic segments of the offshore oil and gas industry.

Deal would create a major offshore services provider

The merger, announced in February 2025, seeks to establish one of the world's largest integrated offshore engineering and construction companies. The combined business would bring together expertise spanning engineering, procurement, construction, offshore drilling and subsea infrastructure installation.

Both companies operate extensive fleets of specialized vessels used to support offshore energy developments, making them key contractors for major international oil and gas producers.

Industry analysts have viewed the transaction as part of a broader wave of consolidation aimed at improving efficiency and expanding capabilities as global energy investment continues to recover.

Competition concerns prompt closer scrutiny

According to sources familiar with the regulatory process, European competition authorities are expected to conduct a comprehensive investigation into the potential impact of the merger on market dynamics.

A Phase II review typically allows regulators to carry out a detailed assessment of whether a proposed acquisition could reduce customer choice, strengthen market concentration or affect pricing and innovation within the sectors concerned.

The investigation is expected to examine several offshore service markets where Saipem and Subsea 7 maintain significant positions, including engineering, subsea construction and installation activities.

Energy industry watches regulatory outcome

The proposed combination has attracted considerable attention across the energy sector because the merged company would become one of the largest providers of offshore engineering services globally.

Its customer base includes major international energy producers involved in offshore developments, including projects in the North Sea, the Mediterranean, the Middle East, West Africa and the Americas.

A successful merger could strengthen the companies' ability to compete for increasingly complex offshore energy projects, while regulators will seek to ensure that the transaction does not diminish effective competition in European markets.

The European Commission has not yet issued a formal decision on the case, and the outcome of the anticipated investigation could influence the structure of the global offshore services industry as companies continue to pursue consolidation strategies.