The European Commission has paused its Phase II antitrust investigation into the proposed merger of Italian energy services group Saipem S.p.A. and Luxembourg-based Subsea7 S.A., stopping the regulatory clock while it awaits additional information from the parties.
As reported by Reuters, the suspension took effect on August 25, 2026, and has no fixed duration. The review timetable will restart only once the Commission deems the outstanding information complete. The move does not indicate that the transaction will be blocked, but it places further pressure on the planned closing timetable.
Saipem and Subsea7 formally notified the deal to Brussels on June 16, 2026. On July 22 the Commission opened an in-depth investigation after identifying “serious doubts” about the merger’s compatibility with the EU internal market, particularly in the market for subsea umbilicals, risers and flowlines (SURF).
The original Phase II deadline of November 26 was later extended to December 16 following a request by the companies. That December date is now at risk if the pause lasts several weeks, potentially pushing completion into early 2027.
The Commission’s preliminary review found Saipem and Subsea7 to be two of only three leading global SURF suppliers, competing closely on larger and more technically demanding oil-and-gas and carbon-capture projects. Regulators cited limited spare vessel capacity, high barriers to entry and few comparable alternatives. The investigation also covers related markets such as trunkline installation and subsea decommissioning. Other activities, including offshore wind and conventional offshore construction, were viewed as largely complementary.
The all-share transaction, first announced in February 2025 and formalized by a binding agreement in July 2025, would see Subsea7 absorbed into Saipem, which would be renamed Saipem7. Existing shareholders of each company would own 50% of the combined group. The new entity is projected to generate approximately €21 billion in annual revenue, more than €2 billion in EBITDA and hold a backlog of around €43 billion, with a fleet of more than 60 construction vessels and some 44,000 employees. The companies have targeted €300 million in annual synergies by the third year after closing. Subsea7 shareholders are due a €450 million special dividend immediately before completion.
The deal has already received clearance from 10 of the 16 competition authorities reviewing it, including unconditional approval in Brazil, the United Kingdom and the United States (where the Hart-Scott-Rodino waiting period expired). Turkey’s competition authority also approved the transaction in July. The companies continue to operate independently until all remaining approvals are obtained.
Saipem and Subsea7 have not issued an immediate public comment on the latest pause. The original target of completion in the second half of 2026 remains in place, though the stop-the-clock procedure leaves less room to meet that schedule.