Source: Australian Ministers for Regional Development
Saipem S.p.A’s proposed merger with Subsea7 S.A could substantially lessen competition and requires an in-depth Phase 2 assessment, the ACCC has decided.
Saipem is a global engineering and construction company that provides services for the oil and gas industries across both offshore and onshore projects.
Subsea7 is also a global engineering and construction company, providing services for offshore oil and gas projects.
Both parties are key suppliers of engineering, construction and maintenance services to offshore Australian oil and gas producers, with each operating a fleet of pipelaying and other vessels to provide these services. Both companies are key contractors in the design, engineering, procurement, fabrication and installation of subsea infrastructure that connects subsea wells and production systems to surface facilities.
“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,” ACCC Commissioner Dr Philip Williams said.
“We will conduct further in-depth inquiries during the Phase 2 assessment and seek more information about the likely competitive effects of this proposed merger.”
The ACCC has not reached a conclusion on the issues and will continue to consider the acquisition in Phase 2.
The ACCC invites submissions in response to its Phase 2 Notice by 21 July 2026. Parties can contact the ACCC via mergers@accc.gov.au.
More information and the Phase 2 Notice are available on the ACCC’s Acquisitions Register: Saipem – Subsea7.
Background
Saipem is a global engineering and construction company based in Italy that provides services for offshore and onshore projects in the oil and gas industries.
Subsea7 is a global engineering and construction company based in Luxembourg that provides services for offshore oil and gas projects.
Offshore oil and gas projects rely on engineering, construction and maintenance services provided by the merger parties and others. These services include the design, engineering, procurement, fabrication and installation of subsea infrastructure equipment plus pipelines and cables (called subsea umbilicals, risers and flowlines, or SURF) that connect subsea wells and production systems to surface facilities (SURF services).
Saipem and Subsea7 each supply design, engineering, procurement, fabrication, construction and installation services for SURF projects. They operate globally and provide services in Australia, including off the Pilbara coast of Western Australia.
Saipem and Subsea7 also both supply inspection, repair, maintenance and decommissioning services for offshore oil and gas projects, and infrastructure for offshore wind farms. However, based on the materials before it, the ACCC does not propose to consider this further.
Formal merger regime
The ACCC can decide a notification is to be subject to a Phase 2 review if the ACCC is satisfied that the acquisition to which the notification relates, if put into effect, could, in all of the circumstances, have the effect, or be likely to have the effect, of substantially lessening competition in any market.
Under the Competition and Consumer Act, a Phase 2 assessment can take up to 90 business days, unless extended under specific circumstances.
More guidance on the new merger regime can be found on the ACCC’s website: Guidance documents for the merger control regime.