Mediobanca Launches Takeover Bid for Banca Generali
Mediobanca SpA has launched a takeover bid for Banca Generali, the private banking arm of Assicurazioni Generali SpA. This move reinforces Generali’s position at the center of heightened merger and acquisition activity in Italy. The deal, if completed, would create a significant wealth management firm with around €210 billion in client assets.
According to Mediobanca CEO Alberto Nagel, the acquisition has been a longstanding objective. He stated that the structure and timing of the offer could also strengthen Mediobanca’s position against a potential hostile bid from Banca Monte dei Paschi di Siena SpA. Nagel described Banca Generali as the “best M&A opportunity” for Mediobanca, saying it would accelerate the group’s transition towards a greater focus on wealth management services.
The proposed deal involves Mediobanca exchanging its Generali stake for shares in Banca Generali, 50.2% of which are owned by Generali. Approval from Generali’s board will be necessary for the transaction to proceed. This move follows a series of bids across Italy’s finance sector and is expected to increase Mediobanca’s return on tangible equity to 20% from 14%, with approximately €300 million in synergies.
Mediobanca plans to call a shareholder meeting on June 16 to seek approval for the proposed bid. The bank’s stake in Generali has been a point of contention with other major investors, including the family of the late Leonardo Del Vecchio and businessman Francesco Gaetano Caltagirone. They have criticized Mediobanca’s investment in Generali, arguing it lacks strategic purpose.
The deal is part of a broader wave of consolidation in Italy’s financial sector that began in late 2023. Generali plays a major role in Italy’s financial system, managing more than €600 billion in assets, including over €30 billion in Italian government bonds. Thomas Nienaber of MKP Advisors described Mediobanca’s offer as “all about Mediobanca defence”, noting that it adds further complexity to the ongoing contest for control of Generali.
