(Bloomberg) – Oil majors ExxonMobil, Petrobras and contractor TechnipFMC Plc have petitioned Brazil’s antitrust watchdog to oppose a merger between Italy’s Saipem SpA and Norway’s Subsea7.
The companies requested to be part of the regulator’s review of the merger, saying it would have a significant impact on competition in the oilfield services industry and cause prices to increase. The companies specifically mentioned the market for subsea umbilicals, risers, and flowlines, known as SURF, as well as pipe laying vessels.
“The transaction reduces choice for Exxon and other customers to a single relevant supplier in the deepwater pipeline installation market,” the oil major said.
TechnipFMC, a competing oil services provider, said the transaction would virtually eliminate opportunities for competitors in Brazilian public tenders.
Petroleo Brasileiro SA, as the state-controlled producer is formally known, said 47% of the total number of vessels available for servicing its subsea engineering, procurement, construction, and installation contracts belong to Saipem and Subsea 7. The news was first reported by Reuters.
Saipem and Subsea 7 didn’t immediately respond requests for comments.
The merger announced in July will create Saipem7, a company with approximately €21 billion in revenue and a combined backlog of €43 billion. The deal is expected to be completed in the second-half of 2026.
