Goal for Saipem7: CADE Approves Merge Without Remedies; SUBC to Top Pick

Research evidence excerpt

Goal for Saipem7: CADE Approves Merge Without Remedies; SUBC to Top Pick

Idea

June 23, 2026 11:06 PM GMT

Morgan Stanley & Co. International plc+MSubsea7 & Saipem | Europe Guilherme Levy

Equity Analyst

Goal for Saipem7: CADE Guilherme.Levy@morganstanley.comMartijn Rats, CFA +44 20 7425-6616

Equity Analyst and Commodities Strategist

Martijn.Rats@morganstanley.com +44 20 7425-6618

Approves Merge Without Alice Bergier Winograd

Alice.Winograd@morganstanley.com +44 20 7425-0174

Remedies; SUBC to Top Pick

Energy Services

Europe

What’s Changed Industry View In-Line

Subsea 7 (SUBC.OL) From To

Top Pick Added SBMO.AS SUBC.OL

The approval of the deal by the Brazilian Antitrust Agency

(CADE) without remedies removes what we view as the single

biggest hurdle to deal completion (guided for 2H26). The

decision this evening was quicker and more beneficial to the

companies than expected. We make Subsea7 our new Top Pick.

Key Takeaways

Deal approved by the Brazilian Antitrust Agency (CADE) this evening, without

remedies.

That compares with consensus of approval with some form of light remedies

over the coming months.

Removes single most important antitrust hurdle to deal.

Moving Subsea7 to Top Pick in the sector.

What's new: The Brazilian Antitrust Agency (CADE) approved this evening without

remedies the merger between Subsea7 and Saipem (link to the decision here).

Since the deal was first announced in February last year, Brazil has been perceived

as the key bottleneck to approval, since it is the one geography where activities

from both companies materially overlap. However, apart from opinions from

interested parties, such as Petrobras and ExxonMobil, to this point, the discussions

within the agency had been kept private.