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In a surprising new move, banking giant UniCredit has revealed it has taken a minority stake in Italy’s largest insurance company Assicurazioni Generali SpA, more commonly known as Generali Group. 

The move is being seen as a continued attempt by the bank to assert its position in the Italian financial and banking market. It is also expected to add another layer to the complicated web of dealmaking being seen in the Italian asset management and banking sector at the moment. 

The bank said on its website: “UniCredit informs that it holds an equity stake of circa 4.1% in the share capital of Generali acquired through market purchases over time.The stake is a pure financial investment of the bank that significantly exceeds its return metrics and has a negligible impact on CET1.

“An additional circa 0.6% is held as part of ordinary services for clients and related hedge.

“UniCredit has no strategic interest in Generali and remains fully focused on the continued execution of UniCredit Unlocked, the tender offer on Banco BPM and the investment in Commerzbank.”

UniCredit still keeping eye on the prize

The stake is expected to go a long way in helping UniCredit with one of its key aims, which is acquiring Banco BPM SpA. According to Bloomberg, which spoke to people familiar with the matter, UniCredit started building its stake in Generali last September, as part of its portfolio management activities, and some time before it placed a bid for Banco BPM. 

UniCredit is a pan-European commercial bank based in Milan, offering group, corporate and individual payments solutions, whereas Generali Group is Trieste-based, offering insurance, investment management, mutual funds and asset management. 

UniCredit has declined to comment further on this matter.  Euronews has contacted Assicurazioni Generali SpA for comment. 

Italian dealmaking continues to heat up

Italian dealmaking has heated up considerably in the last several months, with UniCredit recently launching a bid for Banco BPM. This has upset the Italian government’s plans to push for a merger between Banca Monte dei Paschi di Siena SpA (MPS) and Banco BPM. 

MPS has also launched a bid to take over Mediobanca, which was expected to have the potential to create a third key Italian banking group. However, Mediobanca has rejected this bid, claiming that the offer lacks financial and industrial rationale and, as such, is contrary to Mediobanca’s interests. 

At present, the Mediobanca Group is the one of the major shareholders in the Generali Group, with an approximately 13.10% stake, according to the latter’s website.  

The Del Vecchio Group, the family of the late patriarch Leonardo Del Vecchip, owns 9.93% of Generali Group, with the Caltagirone Group accounting for 6.92%. Benetton Group has a 4.80% stake in Generali Group. 

Commerzbank also in sights

Back in December, UniCredit raised its stake in German bank Commerzbank to about 28% using further derivatives, in an attempt to reach its previously stated goal of having a 29.9% stake. However, the bank still faces opposition by the German government, which holds a large stake in Commerzbank itself, and is wary of a possible takeover by UniCredit, a foreign bank. 

Similarly, Generali Investments Holding and Natixis Investment Managers have announced a joint venture, which could have the potential to create Europe’s second-largest asset management company. This has led to increased worries about growing French influence on the Italian banking and financial sector.