UniCredit Increases Stake in Generali, Escalating Battle for Control of Italy’s Financial Sector

The Italian government is determined to ensure that Generali, the country’s largest private-sector creditor, continues its robust support for Italian sovereign debt. This commitment is particularly crucial as Rome faces the challenge of borrowing nearly €1 billion daily to meet its financial needs. Last month, Generali, headquartered in Trieste, took a significant step by agreeing to merge its asset management division with Natixis, a France-based financial group.

Initially, the government had advocated for an alliance between Banco BPM, a Milanese lender, and Banca Monte dei Paschi di Siena (MPS). The latter remains partially state-owned as Rome works through its privatization after years of restructuring efforts. However, this strategy was disrupted when UniCredit made a formal offer last year to acquire Banco BPM entirely. On Sunday, UniCredit reaffirmed its commitment not only to pursuing this deal but also to strengthening ties with Germany’s Commerzbank.

With those plans in flux, Rome has now pivoted its support toward a bid by MPS to acquire Mediobanca, a merchant bank based in Milan. Mediobanca is a prominent player in Italian finance, historically serving the nation’s largest business empires. It also holds a 13.1 percent stake in Generali, making it the insurer’s largest shareholder. Meanwhile, speculation has arisen over the intentions of the Del Vecchio and Caltagirone families, who hold considerable stakes in Generali (just under 10 percent and 7 percent, respectively) and may be seeking to expand their influence within the Trieste-based insurance giant.

A source familiar with the developments noted that UniCredit’s recent acquisition of a stake in Generali is not an overt effort to sway the internal power dynamics surrounding the billionaires’ struggle for control. However, it could have a noteworthy impact during an upcoming board meeting. The same source mentioned that UniCredit had begun acquiring Generali shares even before MPS made its move on Mediobanca.

According to insiders, UniCredit used derivatives to amass its stake in Generali. This approach allows the bank to gain economic exposure without triggering mandatory public disclosure thresholds. When contacted by POLITICO, UniCredit declined to comment on the matter.

Additional reporting by Geoffrey Smith.