Mediobanca Unveils 6.3BN Exchange Offer for Banca Generali Shares
Deal News | Apr 28, 2025 | Mediobanca
Mediobanca has announced a Public Voluntary Exchange Offer to acquire 100% of Banca Generali shares, valued at EUR 6.3 billion. The transaction will be entirely paid with shares from Assicurazioni Generali, marking a significant shift in Mediobanca's business strategy towards wealth management, making it the group's core business. This deal is expected to double Mediobanca's wealth management revenues to EUR 2 billion and quadruple its net profit to EUR 800 million, positioning the entity as a leader in the European Wealth Management sector by total financial assets, revenues, and growth capabilities. Projected synergies are estimated at EUR 300 million, with substantial expected increases in return on tangible equity (ROTE) and consolidated net profit. The transaction involves selling Mediobanca's investment in Assicurazioni Generali to fund the purchase of Banca Generali, transforming the relationship with Assicurazioni Generali from a financial to industrial partnership. The general meeting for Mediobanca shareholders to approve the deal has been scheduled for June 2025.
Sectors
- Wealth Management
- Financial Services
- Insurance
Geography
- Italy – Mediobanca, Banca Generali, and Assicurazioni Generali are all key financial institutions based in Italy, with operations strongly influenced by Italian finance laws and regulations.
- Europe – The transaction aspires to create a leading Wealth Management entity within Europe, transforming the market dynamics in the region.
Industry
- Wealth Management – The transaction focuses on strengthening Mediobanca's position in the Wealth Management industry, making it the core business of the group.
- Financial Services – Mediobanca and Banca Generali are both key players in providing financial services, including investment and asset management, typical of the industry.
- Insurance – The exchange offer involves shares from Assicurazioni Generali, a major insurance entity, indicating significant involvement in this sector.
Financials
- 6.3 billion EUR – Total value of the Public Voluntary Exchange Offer for 100% of Banca Generali shares.
- 210 billion EUR – Total financial assets of the combined entity post-acquisition.
- 2 billion EUR – Expected annual revenues from Wealth Management for Mediobanca following the acquisition.
- 0.8 billion EUR – Expected net profit from Wealth Management for Mediobanca following the acquisition.
- 300 million EUR – Expected synergies from the acquisition of Banca Generali by Mediobanca.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Mediobanca | Bidding Company | Company | An Italian investment bank initiating the acquisition of Banca Generali to enhance its Wealth Management services. |
| Banca Generali | Target Company | Company | An Italian bank targeted for acquisition by Mediobanca as part of its strategic pivot to wealth management. |
| Assicurazioni Generali | Other Company | Company | A major Italian insurance company whose shares are being used to fund Mediobanca's acquisition of Banca Generali. |