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FinanceEuropean Commission launches in-depth probe into Saipem and Subsea 7 merger
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The European Commission has initiated a detailed investigation into the proposed merger between offshore engineering firms Saipem and Subsea 7, announced in July 2025. The probe, formally notified on June 16, 2026, focuses on potential anti-competitive effects in the subsea umbilicals, risers and flowlines (SURF) services market within the European Economic Area. The EC preliminarily fears the merger, which would create a combined entity named Saipem7 with nearly €21 billion in revenue, could reduce competition, leading to higher prices and less innovation for oil and gas and carbon capture projects. The investigation will also examine adjacent markets like trunkline services and decommissioning, as well as potential vertical or conglomerate effects. The Commission has until November 26, 2026, to issue a final decision.
Source report
By: Shree Mishra
The European Commission (EC) has initiated an in-depth probe into the previously announced merger between rival offshore engineering and construction services providers Saipem and Subsea 7.
The investigation will assess whether the deal could adversely impact competition within the European Economic Area (EEA), particularly in the market for subsea umbilicals, risers, and flowlines (SURF) services.
Background
Saipem and Subsea 7 signed the merger deal in July 2025. The combined entity will be named Saipem7 and is expected to have revenue of nearly €21 billion ($24 billion). The merger was formally notified to the Commission on June 16, 2026.
Key Concerns
Following a preliminary assessment, the EC expressed concerns that the merger could further consolidate the global SURF market, with Saipem and Subsea 7 identified as two of the three largest players in the field.
The Commission indicated that competition could be reduced for both:
- Oil and gas production projects
- Carbon capture and storage (CCS) projects
About SURF Services
SURF services relate to the design, installation, and maintenance of specialised subsea pipes and cables that connect offshore wells to production facilities. The same skill set and assets are also used in CCS, which involves capturing, transporting, and permanently storing carbon dioxide emissions deep beneath the seabed.
Preliminary Concerns
- Reduced competition could lead to higher prices
- Less innovation in the provision of SURF services
- The merged entity may be able to coordinate actions in the market
Scope of Investigation
Beyond SURF, the Commission stated it will examine the impact on adjacent markets, including:
- Trunkline services: Laying larger export pipes
- Decommissioning: Removal of obsolete subsea infrastructure
Both require similar technical resources. The investigation will also assess whether the transaction could produce anti-competitive vertical or conglomerate effects.
Timeline
Under EU merger review procedures, the Commission has 90 working days from notification until November 26, 2026, to reach a decision.
About the Companies
- Saipem (based in Italy) operates worldwide in engineering, procurement, construction, and installation (EPCI) for offshore and onshore energy projects, including SURF, offshore wind, and CCS.
- Subsea 7 (headquartered in Luxembourg) is a global provider of offshore EPCI services, active in SURF, conventional developments, offshore wind, and CCS.
Regulatory Context
The Commission reviews mergers and acquisitions involving companies surpassing specified turnover thresholds to ensure they do not significantly impede competition within the EEA.
This article was originally created and published by Power Technology, a GlobalData owned brand.
Source
Yahoo FinanceWestern
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European Commission Launches In-Depth Investigation into Saipem and Subsea 7 Merger