The paper reports that Italy has given conditional approval to the merger of Subsea7 and Saipem.

The Italian government has approved the merger of energy contractor Saipem with its Norwegian competitor Subsea7 on conditional grounds, according to a report in Tuesday's financial paper MF.

The report stated that Rome's approval on September 18 is conditional upon Saipem continuing to carry out all activities considered strategic in Italy, prioritizing Italian energy infrastructure, and continuing the underwater drone project.

Reports said that the shareholders of both companies will vote on the merger on Thursday.

The newspaper stated that the government views the merger, despite its conditions which aim to protect the national interest, as "crucial" for Saipem.

Through its state-owned lender CDP, the Italian government controls 12,8% of Saipem. Eni, a state-backed energy company, holds another 21.2%.

In a joint statement released in July, the companies stated that Saipem7 will have a backlog of orders of over 50 billion euros (about $50.62 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.

Saipem Subsea7, and the Italian Government were not available to comment immediately.

(source: Reuters)