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.
