Saipem, Subsea7 Merger Approved

Credit: Adobe Stock/david

The tribunal of Brazil's antitrust agency (CADE) has approved the merger of Italian oilfield services company Saipem and Norway's Subsea7, Saipem said on Wednesday.

Brazil's green light is an important step towards the completion of the deal, even if the proposed combination is still under review by other antitrust authorities including the European Commission.

In a statement, Saipem said it and Subsea7 had committed to divest Seven Borealis, a pipelay and heavy-lift vessel, to address competition concerns raised by Brazil during its review.

The sale of the vessel, which is part of Subsea7's fleet, is not expected to significantly affect the reasons behind the combination, and the cost efficiencies previously announced are confirmed, it added.

The combined group, to be renamed Saipem7, will have revenue of about €20 billion, and core earnings of more than €2 billion, the pair said in February 2025 when they announced the merger.

"Subsea7 and Saipem remain firmly committed to the proposed combination and will continue to work constructively with the relevant authorities to secure prompt satisfaction or, where applicable, waiver of the remaining conditions set out in the common merger plan," Saipem said on Wednesday.

(Reuters)