Berenberg affirmed Saipem (SPM.MI) as a "top pick" within its European oilfield services coverage, noting the Italian engineering and construction group's merger with subsea engineering and construction company Subsea7 (SUBC.OL) is progressing "well."
"While [Brazil's competition authority] CADE's decision is not final and remains open for appeal by relevant parties, we view the decision as a key step towards H2 2026 deal closure (most likely in Q4). To date, the transaction has secured approvals from six of the approximately 15 required antitrust jurisdictions, with key clearances still pending in the US, the EU and Brazil," the research firm said Friday after hosting Saipem investor relations representatives at a Madrid roadshow on Thursday.
"Saipem's IR team reiterated the limited overlap in the companies' operations in the US (which are being examined with respect to the US market exposures only) and the EU; the team remains confident in merger approval given the complementary nature of the two portfolios," the note said.
Berenberg noted the broad consensus view that Saipem's target of 300 million euros in annualized merger synergies is a "conservative" baseline, given it represents just 1% of combined operational expenses. The research firm sees a "clear upside" to this target once full integration, detailed data sharing and global fleet optimization take effect.
The stock is still rated at buy, with a price target of 5.25 euros.