The Australian Competition and Consumer Commission (ACCC) is set to conduct a detailed phase two review of the proposed merger between Saipem and Subsea7.
The regulator said that the transaction could significantly reduce competition in the market for subsea infrastructure services supporting offshore oil and gas projects in Australia. The merger deal was announced in July 2025.
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Based in Italy, Saipem provides engineering and construction services to the oil and gas sector across offshore and onshore projects globally.
Subsea7, which is registered in Luxembourg, also operates internationally, supplying engineering and construction services for offshore oil and gas operations.
Both companies have a significant presence in Australia and are main suppliers of subsea infrastructure solutions including design, engineering, procurement, fabrication and installation.
Each company also runs a fleet of pipe-laying and support vessels to deliver these services.
ACCC Commissioner Philip Williams said: “We consider the acquisition could substantially lessen competition in the supply of certain subsea infrastructure that connects subsea wells and production systems to surface infrastructure, services which are critical to Australian offshore oil and gas projects.
“We will conduct further in-depth inquiries during the phase two assessment and seek more information about the likely competitive effects of this proposed merger.”
The ACCC stated that it has not yet formed a final view on the merger and will continue its evaluation in the phase two process. Submissions are now invited from interested parties to the ACCC’s phase two notice, with responses due by 21 July 2026.
Last month, the general superintendence of Brazil’s antitrust authority, CADE, granted an unconditional approval to the merger between Saipem and Subsea7, reported Reuters.
However, parties opposing the deal can still appeal CADE’s decision.
Major oil companies including ExxonMobil, Petrobras and TotalEnergies have opposed the merger in their submissions to CADE.
They expressed concerns that the combined group may gain enough market strength to increase costs, delay projects and push some clients into exclusive, long-term contracts.
Last month, Saipem secured a new contract for the Greater PAJ Project in Angola from Azule Energy.
