Brazil Clears Subsea7-Saipem Merger Without Conditions

(Credit: Saipem)

The general superintendence of Brazil's antitrust watchdog CADE approved the proposed merger between energy contractors Subsea7 and Saipem without restrictions, a document seen by Reuters showed on Tuesday.

The merger between two of the leading global providers of offshore engineering and installation services for the oil and gas industry can still be appealed by firms who oppose the transaction.

The decision is a blow to oil majors such as Exxon Mobil, Brazil's Petrobras and France's TotalEnergies, that opposed the merger, arguing against it in filings to CADE.

The oil majors criticized the merger, as they fear the resulting new firm, to be called Saipem7, would have a strong enough position to impose additional costs, delay projects and pressure some clients into exclusive long-term contracts.

Subsea7 and Saipem did not immediately reply to requests for comment.

(Reuters - Reporting by Ricardo Brito; Writing by Fernando Cardoso and Fabio Teixeira, Editing by Franklin Paul and Mark Porter)