Sources say that the EU will be investigating Subsea 7 and Saipem's deal.

People with direct knowledge said that the?merger of Italian energy contractor Saipem with Norwegian counterpart Subsea 7 will?face a full-scale EU antitrust investigation due to?competition issues about the deal.

In February of last year, the companies announced a deal to create a global leader in offshore energy services. This includes drilling and engineering as well as subsea infrastructure installation for offshore oil and gas projects. Both companies operate a fleet for these services.

People said that the?European Commission would likely launch an in-depth probe at the conclusion of its preliminary review on July 22. Sources said that the 'companies' could deter a re-opening by addressing antitrust concerns, but this was unlikely.

One source suggested that companies could reduce their capacity, or sell some of their vessels.

Saipem and the Commission, which acts as EU's competition enforcer, declined to comment.

Saipem's clientele includes Saudi Aramco and QatarEnergy as well as Abu Dhabi's ADNOC, while Subsea 7 is more focused on international oil companies such BP and Equinor.

Last month, the deal was approved unconditionally in Brazil. This triggered lawsuits from companies that were opposed to a merger. Last week, the Australian antitrust regulator ordered an in-depth investigation due to concerns that the deal would reduce competition for offshore oil and gas services. (Reporting and editing by Louise Heavens, Foo Yunchee)

(source: Reuters)