Intesa abandons plans to acquire Generali
Italian retail bank Intesa Sanpaolo has abandoned plans to join forces with the country's largest insurer Assicurazioni Generali, saying the deal would not create value for its shareholders.
The Italian banking giant said that after a thorough analysis its management did not see any growth opportunities for the group through the deal with Generali.
Intesa added that the deal failed to meet the criteria in terms of creation and distribution of value for its stakeholders.
A statement from Intesa read: “In the light of the analyses on the insurance group carried out on the basis of information currently available to the public, the management sees no opportunities that fulfil the criteria - in terms of creation and distribution of value for the Bank’s shareholders, in keeping with the objective of maintaining a leadership position in capital adequacy - against which it examines options for the Group’s internal and external growth on a regular basis.”
The company issued a fresh commitment to enhance the creation and distribution of value for its stakeholders organically besides sustaining capital adequacy.
Intesa stated that it will continue to distribute €10bn of cumulative cash dividends to its shareholders as per the Business Plan 2014-2017.
It has pledged to show considerable growth in wealth management to its stakeholders.
On the insurance front, Intesa has revealed to develop its non-life insurance business significantly by growing the product penetration with the customer base on par with the life insurance business by suitable actions in synergy with the bank networks.
In late January, Intesa released a statement noting that it was looking to grow in asset management, private banking and insurance with its banking networks which also included potential global partnerships.
Image: Generali's headquarters in Trieste, Italy. Photo: courtesy of Zinn/commons.wikimedia.org.