Italian Banking Sector Faces Turbulent Consolidation
A high-profile asset management merger involving Italy’s largest insurer, Assicurazioni Generali SpA, has intensified the already turbulent year for banking sector consolidation in Italy. The proposed partnership between Generali and French bank BPCE SA’s asset management arm, Natixis, aims to create Europe’s second-largest investment firm but has faced resistance from prominent Generali shareholder Francesco Gaetano Caltagirone and some Italian government members.
Despite these concerns, the deal retains Mediobanca’s backing, Generali’s leading investor. The project, unveiled in January, is expected to be formalized this summer and completed by early 2026. Once signed, the transaction will be subject to scrutiny by Italian authorities.
Tensions continue to rise within Generali’s shareholder base. UniCredit has disclosed a near-7% stake in the insurer, though CEO Andrea Orcel stated this is a “purely financial” holding and plans to divest gradually.
Banking M&A Faces Hurdles
Italy’s wave of financial sector mergers and acquisitions is increasingly marred by delays due to regulatory demands and shareholder pushback. Mediobanca’s own maneuvers underscore the broader uncertainty, having postponed a key shareholder meeting to September 25 after CEO Alberto Nagel faced potential loss of investor support for his attempted takeover of Banca Generali.
UniCredit’s hostile takeover of Banco BPM has been derailed by Italian government conditions, which CEO Orcel called potentially unlawful. The bank initiated the bid to secure its leadership within Italy’s financial sector, but Rome’s intervention has led to a 30-day suspension of the offer.
Complex Interplay of Interests
State-controlled Banca Monte dei Paschi di Siena’s unsolicited bid for Mediobanca has further stirred Italy’s fragmented banking environment. Mediobanca rebuffed the offer, describing it as lacking strategic rationale and potentially harmful. Yet the move is supported by the Meloni administration and key Monte Paschi investors, including Caltagirone and the Del Vecchios.
Mixed Progress Across Deals
Despite the turbulence, some transactions have moved forward. Banco BPM’s acquisition of asset manager Anima Holding SpA, launched last November, was improved after initial terms and has since closed. The Italian government sold a 15% stake in Monte Paschi last November as part of its bank consolidation strategy.
Analysts predict further disruption due to rival investor groups, political oversight, and cross-ownership structures entangling every major deal. “The recent delays may not be the last,” noted Bloomberg Intelligence’s Lento Tang, citing “political risk” as a persistent barrier to consolidation.
