French banking group BPCE and Italian insurance giant Generali have agreed to merge their asset management units, forming a European powerhouse with assets totalling €1.9tn.
Both companies announced today that they had signed a non-binding memorandum of understanding to establish a joint venture. Under the 15-year agreement, each firm will hold an equal 50% stake in the new entity.
The combined business will rank among the leading asset managers in Europe, with assets of €1.9tn and generating €4.1tn in revenue and enhancing distribution networks in crucial markets such as France, Italy, and the United States.
Woody Bradford, currently leading Generali’s investment segment, will take charge of the newly formed entity, while Natixis chair and BPCE CEO Nicolas Namias is set to become chairman.
Generali’s CEO, Philippe Donnet, said that the partnership offers a “unique chance to create a European leader and one of the world’s top 10 asset managers, leveraging our deep roots in Italy, France, and the US.”
He added that Italy, along with the other countries they serve, would gain from a more robust asset management platform with expanded investment capabilities, ultimately benefiting the economy.
Natixis Investment Managers, owned by BPCE and which has a multi-affiliate business model, ranks among Europe’s top asset managers, overseeing $1.4tn in assets.
The merger follows a trend of consolidation in the asset management industry, as firms seek greater scale and diversification into new asset classes.
In August, BNP Paribas revealed that it had entered exclusive negotiations with Axa Investment Managers for a potential €5.1bn acquisition.
The transaction is expected to complete by early 2026.
