Saipem and Subsea7 Merger: Potential Index Impact

Research evidence excerpt

Saipem and Subsea7 Merger: Potential Index Impact

J P M O R G A N Global Markets Strategy

07 July 2026

Saipem and Subsea7 Merger

Potential Index Impact

Saipem and Subsea7 have entered into a binding merger agreement, with the Global Quantitative and Derivatives

combined company to be renamed Saipem7. Saipem7 will remain incorporated in Strategy

Italy and headquartered in Milan, with shares listed on both the Milan and Oslo Pankaj Gupta, CFA AC

stock exchanges. Under the terms of the transaction, participating Subsea7 (44-20) 7134-5483

shareholders will receive 6.688 new Saipem shares for each Subsea7 share. pankaj.gupta2@jpmorgan.com

Subsea7 will also distribute an extraordinary dividend of €450 million to its J.P. Morgan Securities plc

shareholders immediately prior to completion of the proposed combination.

Completion is anticipated in the second half of 2026, subject to regulatory

approvals and closing conditions.

Index Membership:

Subsea 7 Sa (SUBC NO ) is a part of MSCI Europe Small Cap, FTSE Europe

Small Cap and Stoxx Europe 600 Index.

Saipem Spa (SPM IM ) is a part of MSCI Europe Small Cap, FTSE Europe

Small Cap, FTSE MIB and Stoxx Europe 600 Index.

Potential Passive Index Impact:

MSCI: Both Subsea7 and Saipem are constituents of the MSCI Europe Small Cap

Index. Because the combined company’s market capitalization is expected to

increase by more than 50% versus the company’s full market capitalization

immediately prior to the event, MSCI is expected to conduct a size-segment review

and may reclassify the combined company into the Standard segment effective at

the time of the event.

FTSE MIB: FTSE MIB is expected to update Saipem7’s shares outstanding and

investable free float in the index to reflect the merger terms.