MILAN: The investment committee of Generali has given its green light to the Italian insurer’s planned asset management deal with Natixis Investment Managers, two sources close to the matter say.
Generali and Natixis, which is owned by French bank BPCE, have been discussing a tie-up to create a major European fund manager, at a time when the industry is under pressure to scale up to shield profit margins and sustain rising technology investments.
The board of Generali, which is Italy’s biggest insurer, met yesterday to examine the transaction.
Generali’s investment committee gives its opinions on merger and acquisition deals worth at least 250mil, as well as strategic partnerships, including through joint ventures.
Natixis managed €1.28 trillion or about US$1.31 trillion in assets as of Sept 30, against Generali’s 843bil.
The Italian insurer would contribute only €650bil to the combined entity, a source had previously said.
Two major Generali shareholders – Italian businessman Francesco Gaetano Caltagirone and the holding company of late fellow billionaire Leonardo Del Vecchio – have reservations over the deal due to concerns about the influence the French side would exert in the partnership, a separate source with knowledge of the matter previously said.
The two shareholders together control three out of 13 seats on the Generali board. The investment committee is made up of six directors.
The deal will be scrutinised by the government under Italy’s “golden power” legislation, giving Rome a say over transactions that affect companies deemed of strategic national importance.
Tasked with refinancing one of the world’s largest public debts, Italy’s government is keen to keep savings managers in domestic hands, so as to be able to lean on domestic buyers in the event of a crisis.
Earlier in December, Italian Prime Minister Giorgia Meloni said the country had “to be careful” to keep within its borders the “decision-making centres” that allocate domestic savings, in order to make sure the money is invested in Italy. — Reuters
