The Natixis-Generali merger, discussions for which began last year, is taking shape. The two firms will equally co-own the business, which is expected to launch in early 2026.
After signing a non-binding memorandum of understanding, the firms announced that Generali Investment Holdings CEO Woody Bradford will serve as CEO of the new venue. Natixis Investment Management CEO Philippe Setbon will be his deputy. The company will be established in Amsterdam, with operational hubs in France, Italy and the US.
The combined business will hold €1.9 trillion in assets under management (AUM), putting it in the top 10 of global asset managers by AUM and taking first place in Europe by revenues (€4.1 billion). The companies will retain control over asset allocation decisions for their respective investments.
This merger follows a series of European asset management consolidation announcements last year, including BNP Paribas’s discussions of a €5.1 billion deal to buy AXA IM and UniCredit’s reentry into the space with its Banco CPM.
READ MORE: Natixis and Generali in talks to create €2 trillion asset manager
Generali is contributing €15 billion in seed and acceleration capital across affiliates making up the joint venture. This will allow the company to benefit from further investments executed by asset management partners on its behalf.
Over the first two years of the new company’s operations, BPCE will receive preferred dividend rights and Generali the repayment tranches of a loan related to its recent acquisition of MGG Investment Group.
Natixis parent group BCPE’s CEO Nicolas Namias will serve as chairman of the board, and Generali’s CEO Philippe Donnet as vice chairman. The companies stated that employee representative bodies will be consulted before definitive transaction documents are signed.
©Markets Media Europe 2024
