The Australian Competition and Consumer Commission (ACCC) has announced that the proposed merger between global engineering and construction giants Saipem S.p.A and Subsea7 S.A will face a comprehensive Phase 2 review. The decision comes amid regulatory concerns that the multi-billion dollar consolidation could substantially lessen competition across critical segments of Australia’s offshore oil and gas industry.
Both Italian-headquartered Saipem and Luxembourg-based Subsea7 operate as major international contractors, commanding extensive fleets of specialized pipelaying and construction vessels. In Australia, the two companies are chief suppliers of engineering, procurement, fabrication, and installation services for subsea umbilical, riser, and flowline (SURF) systems—the critical infrastructure required to connect deepwater wells and production systems to surface facilities. Their domestic operations are particularly vital to major energy assets located off the Pilbara coast of Western Australia.
ACCC Commissioner Dr. Philip Williams highlighted the regulator’s apprehension regarding the transaction’s impact on market dynamics. He noted that the acquisition has the potential to diminish competition in the supply of subsea infrastructure that serves as the lifeblood of Australian offshore oil and gas projects. Because these services are highly technical and heavily reliant on specialized marine fleets, a reduction in the number of primary contractors could yield significant implications for project costs and timelines.
Under the regulatory framework of the Competition and Consumer Act, a Phase 2 review is triggered when the ACCC identifies a credible risk that a transaction could likely reduce competition within a given market. This formal, in-depth inquiry grants regulators up to 90 business days to scrutinize the competitive landscape, gather further empirical evidence, and determine whether the transaction can proceed, requires divestments, or must be blocked entirely.
While the ACCC has emphasized that it has not yet reached a final conclusion on the merger, the progression to Phase 2 signals that the regulator is prepared to conduct an exhaustive evaluation of the oilfield services sector. The antitrust watchdog has formally invited market participants and interested parties to submit feedback in response to its Phase 2 Notice by July 21, 2026, as it seeks to quantify the broader economic impact of the proposed consolidation.
