The European Commission granted foreign subsidies approval to Saipem and Subsea7 for their intended merger on June 29, 2026. This approval addresses concerns related to foreign subsidies and is a crucial step in the merger process. Energy services companies are immediately affected, with the most important practical consequence being the potential for increased competition in the market. The merger is still under review by the European Commission under its merger control powers.

Full News Breakdown

The European Commission's approval of the Saipem and Subsea7 merger was triggered by the companies' intention to merge. The core disagreement was related to foreign subsidies, which the European Commission has now approved.

• Case Name: Not specified

• Court: European Commission

• Date: June 29, 2026

• EU Instruments: Not specified

• UK Legislation Cited: Not applicable

• Key Provisions: Foreign subsidies approval

• Primary Legal Issue: Merger control and foreign subsidies

• Applicant Arguments: Not specified

• Respondent Arguments: Not specified

• Court Reasoning: Not specified

• Holding: Approval of foreign subsidies

• Operative Order: Not specified

• Practical Outcome: The merger is still under review by the European Commission

How Does This Affect You?

Before this ruling, there was uncertainty about how the European Commission would handle foreign subsidies in merger cases. The European Commission has now clarified its approach to foreign subsidies, providing more transparency and predictability. This shift creates a compliance obligation for companies involved in mergers to review their transactions and assess the potential implications of foreign subsidies.
The change affects companies, lawyers, and law students, particularly in terms of assessing merger transactions and compliance with EU regulations.

For Lawyers & Advocates

• Lawyers may find it useful to review the European Commission's guidelines on foreign subsidies to advise clients involved in merger transactions.

• The implications of this approval for drafting merger agreements and negotiating terms related to foreign subsidies may be significant.

• Lawyers may want to consider the potential risks and benefits of foreign subsidies in merger transactions, including the impact on competition in the market.

• This approval may influence the overall approach to merger control in the EU, particularly in relation to foreign subsidies.

• The decision may be relevant in future merger cases, and lawyers may find it useful to evaluate its potential impact on the European Commission's decision-making process.

For Law Students

The decision provides an opportunity to examine EU Competition Law, as it clarifies the concept of foreign subsidies in merger control.

• The decision is relevant for the study of:

  • EU Competition Law

  • Merger Control

  • Foreign Subsidies

  • State Aid

• Comparable cases include Altstoff Recycling Austria AG v. Commission (C-324/07) and Ryanair v. Commission (T-494/09), which provide insight into the European Commission's approach to state aid and merger control.

For Businesses

• Energy services companies may want to consider reviewing their merger plans to take into account the European Commission's guidelines on foreign subsidies.

• Companies involved in mergers may want to review the potential implications of foreign subsidies on their transactions, including the impact on competition and market share.

• Boards of directors and General Counsel may find it useful to review internal documentation and filing processes to prepare for potential foreign subsidy concerns.

Key Takeaways

• The European Commission has established a clearer approach to foreign subsidies in merger cases, providing more transparency and predictability for companies.

• Lawyers may find it useful to consider the implications of foreign subsidies in merger transactions, including the potential risks and benefits.

• The European Commission's approval of foreign subsidies in the Saipem and Subsea7 merger may have implications for future mergers, and companies may want to prepare to address potential concerns related to foreign subsidies.

• The European Commission will continue to play a crucial role in reviewing mergers and addressing concerns related to foreign subsidies, and companies may want to review their merger plans and internal documentation to prepare for potential regulatory considerations.

• Businesses may want to consider the potential implications of foreign subsidies on their merger transactions, and review their plans accordingly.

References

1. Information for EU Residents Regarding the U.S. – EU Safe Harbor Program | Federal Trade Commission

2. [PDF] Developments in Competition Law in the European Union and the ...

3. Start-ups, killer acquisitions and merger control

4. 15 U.S. Code § 18b - Mergers involving foreign government subsidies

5. Article 1 - State Aid | State Regulations | US Law | LII / Legal ...

6. Court of Justice of the European Union - curia

7. Law.Cornell.Edu - Cornell University

Source: Saipem, Subsea7 get EU foreign subsidies approval for tie-up