Brussels: The European Commission opened an in-depth antitrust probe on 22 July 2026 into the proposed merger of Italy's Saipem and Norway's Subsea7, warning that the tie-up could weaken competition in offshore energy construction.

The subsea merger would combine two of the three leading players in subsea umbilicals, risers and flowlines, the specialised pipework known as SURF that carries oil and gas from the seabed to the surface. Regulators fear the deal, which would create a group called Saipem7, leaves customers with too few credible alternatives and hands the merged firm room to raise prices.

Saipem, headquartered in Milan, builds and installs energy infrastructure worldwide, from offshore platforms to wind farms and carbon-capture systems. Subsea7, based near Oslo, competes in the same waters. Together they would dominate a niche that underpins much of Europe's offshore energy supply, and the Commission wants to know whether rivals such as TechnipFMC could still discipline their pricing.

The move escalates the review from a routine first-phase check into a full Phase II investigation. Brussels now has 90 working days, until 26 November 2026, to reach a verdict. The Commission can clear the deal, block it, or approve it on condition that the companies sell assets or offer other remedies.

Officials stressed that opening a deeper inquiry does not prejudge the outcome. It reflects the need to gather evidence from customers, competitors and industry experts before ruling on a market where a handful of contractors handle billion-euro projects. The subsea merger also faces scrutiny from Australia's competition regulator, a sign of how concentrated the global SURF business has become.

The two companies said they remain confident the deal will close and pledged to cooperate with the review. They argue that scale would let a combined European champion compete against larger American and Asian rivals and take on the surge of offshore wind and carbon-capture work that the energy transition demands.

The case lands as the Commission sharpens its merger enforcement across strategic industries, balancing the drive for European champions against the risk that consolidation leaves buyers worse off. Energy firms that commission offshore projects are watching closely, because higher SURF prices would ripple through the cost of North Sea gas fields and the wind farms meant to replace them.

Details of the inquiry appear in the Commission's competition case register, and the opening decision was reported on 22 July by the European Sting. A ruling before the November deadline will show how the Commission weighs industrial ambition against competition on the seabed.