Unicredito/Capitalia merger probe to examine Mediobanca/Generali links |
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Tue, 17 Jul 2007 17:47
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MILAN (Thomson Financial) - Italy's antitrust authority said its probe into the merger of Unicredito Italiano SpA and Capitalia SpA will include an examination of competitive risks from their major stakes in Mediobanca SpA, which in turn is the largest shareholder in Assicurazioni Generali SpA.In a statement launching its probe into the Unicredito/Capitalia merger, the authority said it will also examine possible dominant positions in traditional banking, savings markets, investment banking, insurance, and other markets, which are not strictly banking.The launch of the authority's probe follows a referral to the Italian authorities earlier this month by the European Commission.The merger will create one of the largest banks in the Italian market and in the euro zone, with a capitalisation of 100 bln eur, 5,000 branches and 3,000 financial advisers, the authority said.In traditional banking, the authority is concerned by excessive market power particularly in Sicily and Lazio regions, it said.On links to Mediobanca and Generali, the probe will look at shareholder agreements, governance and other links, it said.There is the risk of a 'strong reduction in competitive pressure from the new bank in life insurance and in investment banking', it said.Unicredito holds a 8.8 pct stake in Mediobanca while Capitalia has 9.6 pct, though the banks have said they will halve the combined stake.Mediobanca holds 15.9 pct in Generali.nigel.tutt@thomson.comnt/jfrCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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