(Bloomberg) -- Assicurazioni Generali SpA aims to clinch a preliminary agreement with Natixis SA within the next eight weeks to combine their asset management operations, potentially adding to a wave of deals across the industry.
Generali wants to achieve an agreement on the main terms of the structure before its investor day, which is scheduled for Jan. 30, the people said. There’s no certainty a deal will be reached, they said.
The two firms have been discussing a tie-up of their asset management operations, Bloomberg reported last month. The preferred plan is to set up a new company that would combine the €650 billion ($688 billion) in assets currently managed by the Italian insurer’s asset management unit, Generali Investments Holding, with the $1.3 trillion overseen by Natixis Investment Managers, the people familiar with the matter said now.
Representatives for Generali and Natixis declined to comment. Italian newspaper Il Sole first reported the plan to create a new jointly owned company.
The potential deal would add to an M&A boom that has swept across the European asset management industry since BNP Paribas SA agreed to buy AXA SA’s asset management arm earlier this year. Europe’s largest asset manager, Amundi SA, has held talks with insurer Allianz about acquiring control of its investment arm Allianz Global Investors, Bloomberg has reported. In Italy, Banco BPM SpA is seeking to take over Anima Holding SpA.
Under the current discussions, Generali Investments Holdings and Natixis would each own 50% in the potential joint venture, and each firm would continue to maintain full ownership of the assets they’d shift to the new entity for management, the people familiar with the matter said. One goal would be to achieve cost savings through economies of scale, they said.
The new entity’s first chief executive officer could be Generali Investments Holding CEO Woody Bradford, they said.
Generali Chief Executive Officer Philippe Donnet is seeking to grow in asset management. Earlier this year, he completed the acquisition of asset manager Conning Holdings Ltd., which oversees more than $117 billion from investment centers in Asia, Europe and North America from Cathay Life. The deal gave Cathay a 17% stake in Generali Investments Holding.
--With assistance from Donato Paolo Mancini.
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