Finance
Generali and France's BPCE scrap plans to merge asset management units
Published by Global Banking & Finance Review®
Posted on December 11, 2025
2 min readLast updated: January 20, 2026
Quick Summary
Generali and BPCE have scrapped plans to merge their asset management units due to unfavorable conditions, despite initial agreement in January.
Generali and BPCE Cancel Plans to Merge Asset Management Units
By Gianluca Semeraro
MILAN, Dec 11 (Reuters) - Italy's biggest insurer Generali and French bank BPCE said on Thursday they had dropped plans to merge their asset management businesses, in the absence of conditions necessary to make the deal viable.
Generali in January signed a non-binding accord with BPCE to combine their asset management units - Generali Investment Holding (GIH) and Natixis Investment Managers - and create Europe's largest asset manager by revenue.
"While the work conducted together in recent months confirmed the merits and industrial value of a partnership, Generali and BPCE have jointly taken the decision to terminate negotiations, concluding that the conditions to reach a final agreement are not currently present", the two companies said in a joint statement, without elaborating further.
The deal was opposed by the Italian government and two major Generali investors - Delfin, the Del Vecchio family's holding company, and construction tycoon Francesco Gaetano Caltagirone.
The two investors recently consolidated their influence over the insurer by backing a takeover of Generali's biggest shareholder Mediobanca <MDBI.MI> by Tuscan lender Banca Monte dei Paschi di Siena.
The government and the two shareholders were concerned that the Italian insurer would lose full control over how to allocate the savings of Italian citizens, sources said.
The deal would have required state approval under Italy's 'golden power' rules, which are designed to protect companies deemed of strategic national importance.
"Both groups maintain their commitment to the development of a thriving financial industry with globally competitive European champions contributing to the region's economic success," Generali and BPCE said.
Sources told Reuters in October that Generali and BPCE were likely to abandon their plans.
(Reporting by Gianluca Semeraro, editing by Alvise Armellini and Gavin Jones)
Key Takeaways
- •Generali and BPCE have canceled their merger plans.
- •The merger aimed to create Europe's largest asset manager.
- •Italian government and major investors opposed the deal.
- •State approval was required under Italy's 'golden power' rules.
- •Both companies remain committed to a strong European financial industry.
Frequently Asked Questions about Generali and France's BPCE scrap plans to merge asset management units
1What is asset management?
Asset management refers to the systematic process of developing, operating, maintaining, and selling assets in a cost-effective manner. It involves managing investments on behalf of clients to achieve specific financial goals.
2What is a merger?
A merger is a business combination where two companies join to form a new entity. This can enhance market share, reduce competition, and create synergies that improve operational efficiency.
3What is a non-binding agreement?
A non-binding agreement is a document that outlines the terms of a proposed deal but does not legally obligate the parties to follow through. It serves as a starting point for negotiations.
4What are investors?
Investors are individuals or entities that allocate capital with the expectation of generating a financial return. They can invest in various assets, including stocks, bonds, real estate, and businesses.
