Saipem, Subsea 7 Undergo EU Antitrust Investigation

Italian energy contractor Saipem's merger with Norwegian peer Subsea 7 is set to face a full-scale EU antitrust investigation because of competition concerns about the deal, people with direct knowledge of the matter said.

The companies announced the deal in February last year to create a leading global player in offshore energy services, from drilling and engineering to laying subsea infrastructure for offshore oil and gas projects. Both operate a fleet of vessels for these services.

The European Commission will likely kick off an in-depth investigation at the end of its preliminary review on July 22, the people said. The companies could stave it off by offering remedies to address antitrust worries but this is seen as unlikely, the sources said.

Potential remedies could include the companies reducing their capacity or selling off some of their vessels, one source said.

The Commission, which acts as the EU competition enforcer, and Saipem declined to comment.

Saipem counts Saudi Aramco, QatarEnergy, Abu Dhabi's ADNOC and other national energy companies among its clients while Subsea 7's customer base is more focussed