Saipem7 closing in on its debut as Brazil clears Saipem-Subsea7 merger
The multibillion-dollar merger between Saipem and Subsea7 has secured Brazil’s blessing, pending divestment of a vessel.
Italy’s engineering, drilling, and construction services giant Saipem and the Luxembourg-domiciled Subsea7 have made inroads in bringing their proposed business combination closer to completion, with the green light from Brazil’s antitrust watchdog, the Conselho Administrativo de Defesa Econômica (CADE), clearing a major regulatory hurdle while conditioning the approval on the sale of a pipelaying vessel to preserve market competition.
Saipem and Subsea7 have received the approval from Brazil’s CADE for their proposed combination to create Saipem7, subject to compliance with the commitments set out in a merger control agreement.
The duo has committed to divest the Seven Borealis vessel to address the competition concerns raised by CADE’s tribunal during its review. This commitment includes specific provisions to ensure continuity in the execution of the existing project backlog.
Both companies have emphasized that the divestiture is not expected to materially affect the strategic rationale of the proposed combination. As a result, they have confirmed the synergies previously announced.
This story was originally published by Offshore Energy. Read the full story at Offshore Energy →
Conversation