Brazil's Administrative Council for Economic Defense (Conselho Administrativo de Defesa Econômica, CADE) approved the proposed Saipem-Subsea 7 merger with a vessel divestiture condition, the companies said Nov. 4, moving the deal forward amid competition concerns.
The commitment covers the vessel Seven Borealis. The companies said provisions in the remedy are intended to keep ongoing project work on track. They said transferring the vessel would not materially change the merger's strategic rationale or previously announced synergies.
Reuters reported that CADE's review focused on whether combining two close suppliers could reduce competition for Brazilian deepwater and ultra-deepwater contracts. UOL, citing Estadão Content, reported that the vessel would be made available to another qualified operator and that a monitoring trustee would report compliance to CADE.
Under the merger plan, Saipem would absorb Subsea 7 and take the name Saipem7. The two companies' shareholders are each slated to own 50% of the combined business at closing.
The 2025 agreement projected about €300 million in annual cost and capital-expenditure synergies on a run-rate basis, beginning in the third year after completion. This is a company projection, not a realized saving. The companies had set a second-half 2026 completion window when they signed the agreement in July 2025. They said other closing conditions remain and they will continue working with authorities to meet them or seek waivers.
