Several Brazilian oil firms have called on the national antitrust authority, CADE, to review the proposed merger between engineering contractors Saipem and Subsea7, citing potential threats to competition in the subsea services market.
The companies warned that the deal could significantly reduce competition in Brazil’s offshore engineering and construction sector, a market critical for deepwater oil and gas development. They argued that a merged entity might restrict operator choices, raise project costs, and consolidate market power in ways detrimental to local industry players.
Brazil is one of the world’s largest offshore oil frontiers, with ongoing multi-billion-dollar deepwater projects. Critics of the merger stressed that excessive concentration of subsea services could undermine efficiency and innovation, impacting both domestic and international operators active in the region.
CADE is currently reviewing the submission and is expected to decide whether to open a formal investigation into the regional implications of the merger.
