Italy seeks assurances from Generali on Natixis deal, sources reveal

06 Feb, 2025

Italy's government is scrutinizing Generali's asset management deal with France’s BPCE, seeking guarantees over control of domestic savings allocation. The €5 trillion financial wealth of Italians is vital for Prime Minister Giorgia Meloni's administration, helping to refinance the country’s €3 trillion debt. Generali’s proposed joint venture with BPCE’s Natixis Investment Managers would create Europe’s largest asset manager by revenue, but concerns persist over decision-making power and asset control.

Under the agreement, Generali and BPCE will each hold a 50% stake in the new entity, with Generali Investments Holding (GIH) and Natixis IM as contributors. However, the Italian government wants clarity on asset management responsibilities and is expected to examine relevant contracts in detail before granting approval under its "golden power" rules, which safeguard strategic national interests. The deal’s approval must balance Italy's regulatory authority with EU laws ensuring free capital movement.

Opinions within the government are divided—some officials are strongly concerned, while others prefer non-interference in market transactions. Generali CEO Philippe Donnet has pledged transparency in discussions with authorities. However, with Donnet facing reappointment in May and Generali’s top shareholder Mediobanca now a takeover target for state-backed MPS, political and financial stakes are high.

Adding complexity, two major Generali shareholders—who unsuccessfully sought to remove Donnet in 2022—now hold key stakes in MPS. These shareholders’ appointed Generali directors have withheld support for the BPCE deal. Despite these hurdles, the agreement is expected to close in early 2026, creating a €1.9 trillion asset management powerhouse, rivaling European leader Amundi.

While Generali briefed the government in advance, confidentiality agreements restricted officials from accessing key details. Further discussions are scheduled, with new meetings likely next week, as Rome seeks assurances on keeping critical financial decision-making in Italy.

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