On September 25, 2025, Saipem’s investors officially approved the proposed merger with the Norwegian oil contractor Subsea 7. This decision facilitates the integration of two firms highly specialized in the engineering and installation of complex subsea infrastructure, with a particular focus on pipelines.

The combined entity is positioned to become a dominant force in the fabrication and laying of crucial subsea infrastructure, including export pipelines, flowlines, and risers necessary for transporting hydrocarbons from deepwater fields. Proponents of the merger cite enhanced operational efficiencies, the ability to manage larger, more integrated projects, and optimized asset utilization as key benefits that could streamline project execution for clients worldwide.

While the merger is proceeding, it is facing scrutiny from major energy producers concerned about market concentration. ExxonMobil and Brazil’s state-owned Petrobras have formally raised concerns regarding the competitive implications of the consolidation.

The primary point of objection relates directly to the deepwater services market, specifically concerning the contracting of large-scale pipeline installation work. Operators depend on a competitive bidding process among multiple qualified contractors to manage project costs. The integration of Saipem and Subsea 7 is anticipated to significantly reduce the number of global companies capable of executing the largest, most technologically demanding subsea pipeline contracts.

The formal concerns suggest that this reduction in competition could lead to increased costs for operators and potentially constrain market dynamics for future subsea infrastructure tenders. These objections are expected to trigger comprehensive reviews by competition and regulatory authorities to assess the extent of the market concentration and determine if any remedies or conditions are required before the final integration of the companies is permitted.