Oil companies ask Brazil's antitrust watchdog to interfere in Subsea7 and Saipem merger

Public documents obtained by show that Exxon Mobil and Brazilian state-run Petrobras, as well as oil services provider TechnipFMC, petitioned Cade, the country's antitrust regulatory body, to intervene in an energy contractor merger between Subsea7 & Saipem.

In documents filed on Thursday, firms claimed that the merger of Norway's Subsea7 with Italy's Saipem could lead to a concentration in the subsea services market which would increase costs and reduce competition.

Sources with knowledge on the matter said that the firms wanted Cade to either block the merger, or impose remedies in order to preserve the competition in Brazil. Asset sales are one of those remedies.

Cade did not provide any additional information other than what was in the public file. Petrobras Exxon TechnipFMC Saipem Subsea7 Subsea7 Subsea7 Subsea7 Subsea7 Subsea7 Subsea Seven Subsea7 Subsea7 Subsea7 Subsea7 Subsea7 Subsea 7 Subsea7 Subsea7 Subsea7 Subsea7 Subsea7 Subseas7 Sub

In a joint statement released in July, the companies stated that Saipem7 will have a backlog of orders of 43 billion euro ($50.6 billion), revenues of around 21 billion euro and core earnings exceeding 2 billion euro.

Companies said that the deal should be completed by the second half 2026.

Petrobras stated in its Cade filing that the transaction will impact its company as its core business relies on these firms. Exxon claimed that the transaction would result in a concentration of subsea umbilicals risers flowlines or SURF contractors, which will reduce competition and choice for customers.

TechnipFMC is a rival service provider that said the deal would restrict the ability of others to compete. Reporting by Rodrigo Viga Gaier, Editing by Chizu nomiyama and Writing by Fabio Téixeira

(source: Reuters)