Home / Business and Economy / Offshore Oil Deal Faces Deeper Review
Offshore Oil Deal Faces Deeper Review
3 Jul
Summary
- Australian watchdog advances Subsea7 and Saipem merger review.
- Concerns raised over reduced competition in domestic projects.
- The merger will now undergo a Phase 2 investigation.
The Australian Competition and Consumer Commission (ACCC) has initiated a Phase 2 review for the proposed merger between energy contractors Subsea7 and Saipem. This decision comes after the watchdog expressed significant concerns that the union of these two companies could diminish competition in the Australian offshore oil and gas project market.
The intensified review, known as a Phase 2 investigation, signifies that the ACCC will conduct a more detailed examination of the potential impacts of the merger. The primary focus will be on how the consolidation might affect the competitive landscape and potentially lead to less choice or higher costs for projects within Australia's crucial offshore energy sector.
