Generali, Italy’s largest insurer, has stated that any final agreement to combine its asset management business with France’s BPCE will require prior approval from its board of directors. Generali and BPCE initially signed a non-binding agreement in January to merge Generali Investments with Natixis Investment Managers, potentially creating Europe’s largest asset manager by revenue. Generali is a global insurance and asset management provider. The company offers a range of insurance products and financial services to individuals and businesses.
However, the proposed merger has faced opposition from two of Generali’s major shareholders, raising concerns in Rome where the government is eager to keep Italian savings invested within the country. Italian tycoon Francesco Gaetano Caltagirone and Delfin, the holding company of Leonardo Del Vecchio’s heirs, collectively hold three seats on Generali’s board. The remaining ten board members were appointed by Mediobanca, the top shareholder.
Banca Monte dei Paschi di Siena, in which Caltagirone and Delfin are also significant shareholders, recently acquired a significant stake in Mediobanca, further complicating the situation. Generali confirmed in a statement that any final agreement remains contingent upon approval from the relevant corporate bodies of each party involved. Italian media reports had suggested that a shareholder vote on the transaction was a possibility.
The two companies will continue negotiations until December 31. Generali also confirmed it had agreed with BPCE to waive the 50-million-euro break-up fee that would have been triggered had the deal fallen through.
