Generali and BPCE likely to abandon asset management merger – report

Core Viewpoint - The planned merger between Italian insurer Generali and BPCE's asset management divisions is likely to be abandoned due to opposition from the Italian government and potential management changes at Generali [1][2]. Group 1: Merger Status - Generali and BPCE are working towards finalizing their merger agreement by the end of 2025, but talks may conclude without a deal [1][2]. - The merger deal was amended to eliminate a €50 million ($58 million) break-up fee, with a deadline set for the end of this year [2]. Group 2: Opposition and Influence - The merger faces opposition from the Italian government and significant Generali investors, Delfin and Francesco Gaetano Caltagirone, who have increased their influence over Generali [2][3]. - These investors are backing a takeover of Mediobanca, which holds a 13% stake in Generali and is currently owned by Monte dei Paschi di Siena (MPS) [3]. Group 3: Leadership Changes - MPS has announced a leadership change, appointing Alessandro Melzi d'Eril as CEO and Vittorio Grilli as chair, which may impact Generali [3][4]. - Generali's CEO Philippe Donnet, who has been in position since 2016, was reappointed with Mediobanca's support, but there are concerns he may not complete his mandate extending to 2028 [4].