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].

Generali and French bank BPCE have decided to eliminate the €50m break-up fee from their proposed asset management merger deal, reported Reuters quoting two sources familiar with the development. This move comes amid uncertainty over the deal's completion, with opposition from key Generali shareholders and concerns from the Italian government. In January, Generali signed a non-binding memorandum of understanding (MoU) with BPCE to merge their asset management businesses, creating a joint venture with bal ...