Subsea 7 (AO) | Buy | Full green light for the merger/Saipem is selling the shallow water unit

Research evidence excerpt

Subsea 7 (AO) | Buy | Full green light for the merger/Saipem is selling the shallow water unit

razilian authorities notably argued that the group's combined market share capacity is 30-40%

(see table later). We especially understand that the CADE focused on vessel capacity. Looking at the group's combined market

share in the SURF segment, the CADE argues that it will be close to 40-50%

Parties can make an appeal

Parties can appeal from such a decision.

We would expect TechnipFMC and Petrobras to both appeal.

– For Petrobras, it would be in line with the "poker game" that we mentioned; the Brazilian entity is trying to "extract" vessel

time from SUBC/SPM and has two big tenders currently ongoing; one for a large PLV and one for PLSVs (where SUBC is said to

be a front-runner on some units, based on an Upstream article). An appeal would allow it to have some power, probably, in the

negotiation process.

– TechnipFMC, as a competitor, will likely appeal to postponed/block the creation of a large competitor as long as possible; it's a

fair game.

Completion H2 2026

In that sense, assuming appeal, that would last around 3 months in our view, the completion of the merger is still expected for H2

2026, and probably around October in our view.

Business streamlining has started: disposal of the shallow water drilling business at Saipem.

This morning, Saipem also announced a legally binding sale and purchase agreement with ADES, an "international operator

active worldwide in offshore and onshore drilling services" for the sale of its entire shareholding in Saudi Arabian Saipem Limited

(SAS), its company active in shallow-water offshore drilling operations, with a fleet comprising three owned jack-up rigs (Perro