The ACCC launches an in-depth investigation into the Saipem and Subsea7 merger

The Australian Competition and Consumer Commission (ACCC) has decided to subject the proposed economic concentration between Saipem and Subsea7 to an exhaustive Phase 2 evaluation. The regulatory body warned that the integration of both global engineering and construction corporations has the potential to substantially lessen competition in the national market. Specifically, the affected services correspond to the provision of critical subsea infrastructure intended to connect production wells with surface platforms.

The regulatory impact of Saipem and Subsea7 on the oil sector

Following this official determination, ACCC Commissioner Dr. Philip Williams stated that subsea design, fabrication, and installation services are fundamental for offshore energy projects. Both organizations operate specialized fleets of pipelay vessels and execute key contracts off the Pilbara coast in Western Australia. Consequently, the detailed investigation will seek to determine whether the corporate consolidation will limit the options of local hydrocarbon producers. The regulatory body will keep the reception of commercial and technical submissions open until July 21, 2026.

Additionally, the technical analysis will focus on so-called SURF services, which include umbilical cables, risers, and flowlines. These technologies are indispensable for the logistical operability of the offshore extractive industry. Furthermore, the ACCC clarified that other joint activities relating to the inspection, repair, maintenance, and decommissioning of structures, as well as works for offshore wind farms, are excluded from this in-depth inquiry as no immediate competitive threats were detected in those areas.

Regarding the legal procedure, the Competition and Consumer Act stipulates that a Phase 2 evaluation can extend for a period of up to 90 business days. This timeframe may only be extended under exceptional circumstances provided for by Australian regulations. The final resolution of the case will depend on the volume of information gathered and the strength of the arguments presented by the various stakeholders in the industrial supply chain.

Source and photo: ACCC