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.
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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 €21bn ($24bn).
The merger was formally notified to the Commission on 16 June 2026.
Following a preliminary assessment, the EC expressed concerns that the merger could further consolidate the global SURF market, with Saipem and Subsea7 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 and carbon capture and storage (CCS) projects.
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 highlighted include the risk that reduced competition could lead to higher prices and less innovation in the provision of SURF services.
The Commission also plans to investigate whether the merged entity may be able to coordinate actions in the market.
Beyond SURF, the Commission stated it will examine the impact on adjacent markets. These include trunkline services, which involve laying larger export pipes, and the decommissioning of obsolete subsea infrastructure, as both require similar technical resources.
The investigation will also assess whether the transaction could produce anti-competitive vertical or conglomerate effects.
Under EU merger review procedures, the Commission has 90 working days from notification until 26 November 2026 to reach a decision.
Saipem, based in Italy, operates worldwide in the engineering, procurement, construction and installation (EPCI) for offshore and onshore energy projects including SURF, offshore wind and CCS.
Subsea7, headquartered in Luxembourg, is a global provider of offshore EPCI services, and is also active in SURF, conventional developments, offshore wind and CCS.
The Commission reviews mergers and acquisitions involving companies surpassing specified turnover thresholds to ensure they do not significantly impede competition within the EEA.
