Posted By Global Banking and Finance Review
Posted on January 20, 2025
By Gianluca Semeraro
MILAN (Reuters) -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 said late on Sunday.
Generali and Natixis, which is owned by French bank BPCE, have been discussing a tie-up to create a major European fund manager, 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, meets on Monday to examine the transaction.
Generali's investment committee gives its opinions on merger and acquisition deals worth at least 250 million euros, as well as strategic partnerships, including through joint ventures.
Committee member Stefano Marsaglia, who represents one of Generali's major shareholders, Italian businessman Francesco Gaetano Caltagirone, voted against the deal, a separate source, close to the matter, told Reuters on Monday.
Natixis managed 1.28 trillion euros ($1.31 trillion) in assets as of Sept. 30, against Generali's 843 billion euros. The Italian insurer would contribute only 650 billion euros to the combined entity, a source has previously said.
Woody Bradford, the current head of Generali Investments Holding (GIH), is expected to be appointed as chief executive.
Both Caltagirone and fellow shareholder Delfin, the holding company of late billionaire Leonardo Del Vecchio, have reservations over the deal due to concerns about the influence the French side would exert in the partnership.
Caltagirone controls 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.
In December, Prime Minister Giorgia Meloni said Italy 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.($1 = 0.9736 euros)
(Reporting by Gianluca Semeraro, additional reporting by Stefano Bernabei ; Editing by Valentina Za and Keith Weir)
