The commission is investigating whether the Saipem–Subsea7 merger would leave only one comparable rival for large submarine projects.

The European Commission has opened an in-depth investigation into the merger between Saipem and Subsea7, after a preliminary assessment indicated that the operation could significantly reduce competition for some of the most complex underwater infrastructure projects. The two companies intend to form Saipem7, but the transaction cannot be completed in the notified form without the authorization of the competition authorities.

In short, the Commission is primarily checking the market for SURF services, which cover the pipelines, cables, and other underwater installations through which offshore rigs are connected to surface production facilities. Saipem and Subsea7 are two of the three major global providers of such services. The Commission preliminarily considers that, after the merger, there would remain only one comparable competitor, while the other providers are smaller and have more limited capacities. Clients may have fewer alternatives for complex oil, gas, and carbon capture and storage projects. The investigation will check whether this situation could lead to higher prices or reduced innovation. The Commission will also analyze the installation of export pipelines, the decommissioning of offshore infrastructure, and the possible effects produced by the presence of the resulting group in several related markets. The transaction was notified on June 16, 2026. The Commission has 90 working days, until November 26, to make a decision, and the opening of the in-depth investigation does not pre-determine its outcome.

The main concern regards the services known as SURF, an acronym for the pipelines and cables that connect oil and gas rigs to the production facilities above the sea surface. These systems include pipelines through which hydrocarbons flow, control cables, and other components installed on or near the seabed, sometimes at depths of thousands of meters.

Companies competing for these contracts must be able to design, produce, transport, and install the infrastructure, using specialized vessels and teams capable of working in technically challenging conditions. The Commission preliminarily considers that the necessary investments are very high, the available capacity is limited, and the entry or expansion of new competitors is difficult.

Saipem and Subsea7 compete closely, especially for the most complex and profitable projects. Both are among the three main global suppliers, and the resulting company would hold a high share of both the market and the available capacity for executing projects.

According to the preliminary assessment, after the merger, there would remain only one supplier with comparable capacity. The other identified competitors are considerably smaller and do not seem able to compete to the same extent for all categories of projects, especially for large-scale works that require the most sophisticated vessels.

The clients of the two companies are largely large and experienced groups from the oil and gas sector. The Commission will check whether they would have sufficient alternatives to counteract any price increases following the reduction in the number of suppliers capable of taking on the most difficult contracts.

The investigation will also cover carbon capture and storage projects. These involve collecting carbon dioxide produced by industrial facilities or power plants, transporting it through pipelines, and permanently storing it in geological formations, including beneath the seabed. The infrastructure development currently uses vessels, equipment, and skills similar to those required for offshore oil and gas projects.

The Commission will analyze whether the reduction in competition could lead to higher prices and less innovation, without currently considering these effects as certain outcomes of the merger. The assessment will also check whether the remaining suppliers could more easily reach and coordinate their behavior in a market with fewer participants.

The control will be extended to services for large-diameter underwater pipelines that transport production to shore or to other facilities and to the decommissioning of obsolete offshore infrastructure. These activities may require the same vessels and capacities used for installing equipment, allowing companies to compete in multiple related markets.

The Commission will also examine whether the resulting group could use its position in one activity to limit competition in another. The investigation seeks possible vertical effects, which occur between different levels of a supply chain, as well as conglomerate effects produced by combining related services.

The initial assessment did not identify the same issues across all activities of the companies. The Commission considers that the offerings of Saipem and Subsea7 are largely complementary in offshore wind projects and in some conventional offshore projects, but will continue to verify whether the transaction creates difficulties in the related SURF services markets.

Saipem is an Italian engineering and construction company for energy infrastructure, active in onshore and offshore projects. Subsea7 is based in Luxembourg, is listed on the Oslo Stock Exchange, and specializes in the engineering and installation of underwater infrastructure. Both work on oil and gas projects, offshore wind energy, and carbon capture and storage.

The merger is to be realized through the absorption of Subsea7 by Saipem, which would be renamed Saipem7. The resulting company would remain registered in Italy, headquartered in Milan, and would be listed on the Milan and Oslo stock exchanges. The current shareholders of each company would hold 50% of the capital, assuming the participation of all Subsea7 shareholders in the operation.

Saipem and Subsea7 signed the binding merger agreement in July 2025, and Saipem's shareholders approved the cross-border plan in September of the same year. The companies estimated that the resulting group would have annual revenues of approximately 21 billion euros, an order book of 43 billion euros, and annual savings of approximately 300 million euros after integrating operations. These figures are estimates by the companies regarding the resulting group and not conclusions of the Commission on the effects of the transaction.

The Commission analyzes mergers that exceed the revenue thresholds set by European regulations to determine whether they would significantly impede competition in the European Economic Area or in a significant part of it. Most transactions are approved after the initial check, while an in-depth investigation is opened when there are doubts that cannot be resolved at the first stage.

The opening of the second phase does not mean that the merger will be blocked. During the investigation, the Commission may request additional documents and data, consult clients and competitors, and analyze any solutions proposed by the companies to eliminate the identified issues.

Until November 26, 2026, the Commission may approve the transaction unconditionally, authorize it with obligations or commitments that reduce risks to competition, or prohibit it if it concludes that the issues cannot be remedied. The timeline may be modified under the conditions provided by the European merger control procedure.