Saipem (SPM) shares fall as EC reviews Subsea7 merger proposal
Saipem shares fell 5.3% to €4.48 on 18 June 2026, as the European Commission formally began its review of the Italian company's proposed merger with Subsea7. The decline reflects broader investor caution and a wider sell-off across the oil sector.
The downturn is primarily attributed to two factors. Firstly, a general weakness in crude oil prices has triggered widespread selling in energy-related stocks. Secondly, the European Commission's scrutiny of the Saipem-Subsea7 merger has raised questions, particularly regarding potential market concentration in offshore subsea umbilical, riser, and flowline (Surf) services.
Saipem, listed on Borsa Italiana, is trading down from its previous close of €4.73. The mid-tier Italian energy services provider faces combined pressure from oil price dynamics and regulatory uncertainty surrounding its strategic operation.
Why regulatory scrutiny is weighing on Saipem's merger hopes
Saipem operates as a global service provider for the energy sector, specialising in the design, engineering, construction, and installation of complex offshore infrastructure. Essentially, they build the crucial underwater pipelines and platforms that major energy companies need to extract and transport oil and gas. Their revenue primarily comes from large-scale service contracts and extensive Engineering, Procurement, Construction, and Installation (EPCI) projects.
The primary driver behind Saipem's share price movement today is the formal notification of its proposed merger with Subsea7 to the European Commission for review. This regulatory step has introduced significant uncertainty, as the Commission will assess whether combining these two entities could lead to an excessive concentration of power within the subsea umbilical, riser, and flowline (SURF) services market, while also contending with wider weakness in crude oil prices.
This regulatory uncertainty is directly reflected in Saipem's performance, with its shares currently trading at €4.48, marking a 5.3% decline from yesterday's close of €4.73. Investors are exercising caution, unsure if the deal will proceed smoothly or if strict conditions might be imposed.
Imagine two major local construction firms, both experts in building bridges, decide to merge. Before they can combine, the national competition watchdog steps in to examine the deal. Until that review is complete, and it's clear whether the new, larger company would dominate the bridge-building market or face restrictions, investors remain hesitant.
Saipem
Saipem S.p.A. (SPM) is an Italian energy and infrastructure solutions provider, operating across five divisions: Offshore and Onshore Engineering & Construction, Offshore and Onshore Drilling, and XSIGHT. Its comprehensive services span engineering, construction, installation, maintenance, and decommissioning for platforms, pipelines, and subsea fields. Saipem also develops marine wind farms and energy integration projects, alongside designing onshore facilities for LNG, refining, petrochemicals, and renewables, including CO2 capture and hydrogen production. The company provides integrated services for the energy industry and public infrastructure, alongside drilling services utilising a diverse fleet. As of December 2021, its offshore drilling fleet comprised twelve vessels, complemented by 84 onshore drilling units, 9 fabrication yards, and 41 sea vessels. Saipem S.p.A. is headquartered in Milan, Italy.