Exxon, Petrobras raise concerns over Saipem and Subsea 7 merger

Core Viewpoint - ExxonMobil, Petrobras, and TechnipFMC have raised objections to the merger between Italy's Saipem and Norway's Subsea 7, urging Brazil's antitrust regulator to block the transaction due to concerns over competition in the oilfield services sector and potential price increases [1][2]. Group 1: Concerns Raised - The merger is expected to significantly affect competition in the markets for subsea umbilical, risers, and flowlines, as well as the supply of pipe-laying vessels [2]. - ExxonMobil indicated that the merger would limit customer options, resulting in a single relevant supplier in the deep-water pipeline installation market [2]. - TechnipFMC expressed similar concerns, stating that the deal would restrict competitors' access to Brazilian public tenders [2]. Group 2: Market Position - Petrobras highlighted that Saipem and Subsea 7 already control 47% of the vessels servicing its subsea engineering, procurement, construction, and installation (EPCI) contracts [3]. - The merger would create a new entity, Saipem7, with projected revenues of approximately €21 billion ($22.6 billion) and a combined backlog of €43 billion [4]. - A shareholders' agreement has been signed by Eni, CDP Equity, and Siem Industries to support the merger, with leadership roles designated for the new company [4].