Cade approves Subsea7 and Saipem merger with conditions

Brazil’s antitrust regulator, Cade, has unanimously approved the merger between British company Subsea7 and Italian firm Saipem, subject to specific conditions. Under the agreement, Subsea7 will be incorporated into Saipem, forming a new entity to be renamed Saipem7, which will be headquartered in Milan with listings on the Milan and Oslo stock exchanges.

The approval is conditional upon the sale of a vessel to mitigate potential competitive impacts in the offshore engineering, construction, and maintenance (OECM) markets, specifically regarding subsea systems installation and maintenance services. While Cade’s technical area had initially recommended approval without restrictions, the Tribunal moved to include these requirements following concerns raised by third parties, including Petrobras and Exxon.

The combined company is expected to hold approximately one-third of the market for offshore oil and gas services. The merger aims to combine complementary technologies and geographic footprints, particularly in regions like the North Sea and Brazil, where both companies provide critical infrastructure such as subsea umbilicals, risers, and flowlines (SURF).