Brazil Clears Saipem-Subsea 7 Merger; Saipem Divests Saudi Rig Unit for $285M
Brazil's CADE antitrust agency approved the proposed merger between Saipem and Subsea 7 without restrictions, clearing a major regulatory hurdle as Saipem separately sold its Saudi rig business for $285M.
Brazil's CADE antitrust agency approved late Tuesday the proposed merger between offshore energy engineering and installation contractors Saipem (, ) and Subsea 7 (, ) without restrictions [1]. The unconditional approval marks the first major regulatory clearance for the combination of two of the sector's largest players in subsea construction and pipelay services.
Several large oil firms had criticized the merger over concerns that the combined entity would reduce competition in offshore project bidding, particularly in deepwater markets where both companies hold significant market positions [1]. CADE's decision to approve without remedies suggests the regulator found sufficient remaining competition or determined that market entry barriers would not prevent future challengers.
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