Italian insurer Generali and BPCE, the parent company of Natixis, are likely to scrap their planned merger of asset management divisions without reaching a binding agreement, reported Reuters.
The deadline for finalising the merger between Generali Investments Holding and Natixis Investment Managers is 31 December 2025.
However, the talks may conclude without a deal due to opposition from the Italian government and potential management changes at Generali, reported the publication.
BPCE representative told Reuters: “We have given ourselves until the end of the year to reach an agreement. The teams are working towards this goal, and relations between BPCE and Generali are good.”
Last month, the two companies amended their merger deal to finalise the transaction by the end of this year, eliminating a €50m ($58m) break-up fee.
This transaction is opposed by the Italian government and two significant Generali investors, Delfin and Francesco Gaetano Caltagirone.
The two investors recently increased their influence over Generali, backing a takeover of Mediobanca, which is Generali’s largest shareholder holding a 13% stake.
Mediobanca is currently owned by Monte dei Paschi di Siena (MPS), where these investors hold major stakes. It is an advisor to Generali on the merger.
The Italian state retains a 4.9% share in MPS after its reprivatisation.
MPS has recently announced a leadership change, appointing Alessandro Melzi d’Eril as CEO and Vittorio Grilli as chair.
This leadership change is expected to impact Generali, whose board was largely appointed by Mediobanca.
Generali’s CEO Philippe Donnet, who led the company since 2016, was reappointed with Mediobanca’s support.
Mediobanca secured 10 of the 13 board seats at Generali during the last board appointment.
While Donnet is expected to manage an orderly transition, he may not finish his mandate that extends to 2028, said the report, citing sources.
