Europe’s Offshore Giants Move Closer to a Big Bet

Saipem and Subsea7’s planned tie-up points to deeper consolidation as offshore projects grow larger, riskier, and more demanding

3 Feb 2026

Europe’s offshore services industry is edging toward a turning point. The planned combination of Saipem and Subsea7, expected to close in late 2026 pending approvals, is being read as more than a routine merger. For many in the business, it is a sign that size now matters in ways it did not before.

The reasoning is not hard to follow. Offshore projects are larger, costlier, and more complex than they were a decade ago. Deepwater developments and intricate seabed work leave little room for error. Operators want partners that can manage risk, absorb shocks, and deliver on time. Saipem and Subsea7 say a combined group would be better equipped to do exactly that.

Scale sits at the center of the deal. Together, the companies point to a project backlog of about €43 billion and control of one of the world’s biggest offshore construction fleets. In a sector shaped by volatile investment cycles, regulation, and geopolitics, that kind of heft offers stability. Management argues it would also simplify execution and strengthen bids for large, multi year contracts.

Industry watchers see a familiar pattern. Offshore development is drifting toward a smaller circle of contractors with deep balance sheets and proven track records, rather than long and fragmented supply chains. One analyst described the merger as a practical response to a market where reliability and financial strength increasingly decide who wins work.

Cost savings add to the appeal. The companies estimate annual synergies of roughly €300 million, mainly from better vessel use and shared procurement. Supporters say that could help defend margins while freeing up cash for new technology and lower emission operations, both rising demands from clients and regulators.

There are hurdles ahead. Regulators must still approve the deal, integration will be demanding, and some customers may worry about fewer choices. Even so, the broader mood is cautiously positive.

For Europe’s offshore industry, the message is simple. The rules are shifting, and companies are betting that scale and resilience will shape what comes next.