Brazil antitrust agency approves Subsea7-Saipem merger without restrictions (updated)

TotalEnergies SE

Yesterday 21:39

Updates with context, new information in paragraphs 2-5
By Ricardo Brito

    BRASILIA, June 23 (Reuters) - The general superintendence of Brazil's antitrust watchdog CADE approved the proposed merger between energy contractors Subsea7 SUBC.OL and Saipem SPMI.MI without restrictions, a document seen by Reuters showed on Tuesday.

    The merger between two of the leading global providers of offshore engineering and installation services for the oil and gas industry can still be appealed by firms who oppose the transaction.
  

     The decision is a 
    blow to oil majors
     such as Exxon Mobil XOM.N, Brazil's Petrobras PETR3.SA and France's TotalEnergies TTEF.PA, that opposed the merger, arguing against it in filings to CADE.
  

    The oil majors criticized the merger, as they fear the resulting new firm, to be called Saipem7, would have a strong enough position to impose additional costs, delay projects and pressure some clients into exclusive long-term contracts.
  

    Subsea7 and Saipem did not immediately reply to requests for comment.
  
     

     
  

(Reporting by Ricardo Brito; Writing by Fernando Cardoso and Fabio Teixeira, Editing by Franklin Paul and Mark Porter)
((fernando.cardoso@thomsonreuters.com;))