Australia Competition Regulator Decides on Phase 2 Review of Saipem, Subsea7 Merger

The Australian Competition and Consumer Commission said Friday the proposed merger between Saipem and Subsea7 requires an "in-depth" Phase 2 assessment as it could lessen competition. Both companies are global engineering and construction firms, providing services to offshore Australian oil and gas producers. "We consider the acquisition could substantially lessen competition in the supply of certain subsea infrastructure that connects subsea wells and production systems to surface infrastructure, services which are critical to Australian offshore oil and gas projects," ACCC Commissioner Philip Williams said. ACCC will proceed with the Phase 2 assessment to seek further information about the possible competitive effects of the merger. It is inviting responses through July 21. Saipem and Subsea7 said last year that the merger will form Saipem7, and will generate about 21 billion euros ($24.06 billion) in revenue and a combined backlog of 43 billion euros.