The merger review involving offshore engineering giants Saipem and Subsea7 has hit a snag: the European Commission has suspended its Phase II investigation—effectively freezing the review clock as of August 25—pending the submission of supplementary information by the parties involved. While this move does not signal a rejection of the deal, it means the review timeline will only resume once the Commission deems all requested information has been provided.
The Italian financial daily Milano Finanza, which first reported the news, stated that the European Commission’s suspension of the investigation puts the December 16, 2026, deadline for a ruling on the Saipem-Subsea7 merger at risk; if the suspension lasts for several weeks, the completion of the merger could be delayed until early 2027.
On June 16, 2026, Saipem and Subsea7 formally notified the European Union of the proposed merger. Subsequently, the European Commission identified “serious concerns” regarding the merger’s compatibility with the EU internal market and, on July 22, initiated an in-depth Phase II investigation. The initial deadline for this investigation was November 26; prior to the “stop-the-clock” event, the companies had requested an extension of 14 working days, moving the deadline to December 16.
The European Commission’s concerns center on the SURF (subsea umbilicals, risers, and flowlines) market—equipment used to connect offshore oil and gas or carbon capture projects to production facilities. A preliminary review by the Commission found that the market is dominated by just three major suppliers, with Saipem and Subsea7 holding two of these positions; competition is particularly fierce for larger, more technically demanding projects. The Commission also noted limited spare vessel capacity, high barriers to entry, and a lack of comparable alternatives.
It is worth noting that prior to the European Commission’s announcement to “stop the clock” on the review, the merger between Saipem and Subsea7 had already secured several regulatory approvals: for instance, the proposed merger has cleared US antitrust review, allowing the parties to finalize the deal in the United States, and the UK competition regulator has also approved the transaction. To date, 10 of the 16 competition regulators reviewing the Saipem-Subsea7 merger have granted their approval.
The merged offshore giant will employ approximately 44,000 people and operate a diverse fleet of over 60 vessels. With operations spanning more than 60 countries and covering offshore activities ranging from shallow to ultra-deep waters, the company will provide a comprehensive portfolio of offshore and onshore services—spanning everything from drilling, engineering, and construction to full-lifecycle field services and decommissioning.
Saipem and Subsea7 aim to achieve annual cost and capital expenditure synergies of approximately €300 million starting in the third year following the transaction’s completion. Subsea7 shareholders are also set to receive a special cash dividend of €450 million immediately prior to the deal’s closing. Any prolonged regulatory delays would further postpone the start of integration efforts and the payment of the dividend.
The merger was originally scheduled for completion in the second half of 2026; however, the European Commission’s decision to “stop the clock” on its review has introduced significant uncertainty regarding the timeline.