MILAN (Reuters) – Italy’s top insurer Generali aims to reach a preliminary accord with Natixis Investment Managers to combine their asset management operations in order to submit the deal to its board on Jan. 20, two people close to the matter said.
Generali and Natixis have been in discussions over a tie-up that would create a major European fund manager, at a time when the industry is under pressure to scale up to protect profit margins and sustain rising technology investments.
Natixis, which is owned by French bank BPCE, managed 1.28 trillion euros ($1.32 trillion) in assets as of Sept. 30, against Generali’s 843 billion euros.
Generali would contribute only 650 million euros to the combined entity, one of the sources said, while retaining the assets of its private bank Banca Generali.
Generali and Natixis will have 50% each in the combined entity, sources have previously said, adding that Woody Bradford, the current head of Generali Investments Holding (GIH), is set to be appointed as chief executive.
Securing approval of a preliminary accord from the board at the meeting scheduled on Monday would allow Generali to present the combination to investors at the strategy day it will hold in Venice on Jan. 30.
News of efforts to get to an initial deal by Jan. 20 was first reported on Wednesday by Italian daily la Repubblica.
($1 = 0.9705 euros)
(Reporting by Gianluca Semeraro; Editing by Valentina Za, Kirsten Donovan)
