Commission clears Generali's acquisition of INA subject to important commitments taken by Generali (insurance, Italy)

Brussels, 13/01/2000 (Agence Europe) - The European Commission has approved the merger between the Italian insurance companies Generali and INA, on the basis of commitments taken by Generali for limiting its dominant position on the Italian life insurance market. These commitments bring the Generali/INA market share below the 30% in this sector.

• Generali has undertaken to sell its shares in: i) the insurance company Fondiaria (in order to avoid risks of agreement); ii) life insurance firm Prime Augusta Vita; iii) the banking insurance company Casse e Generali Vita; and iv) the insurance company Aurora.
• INA will for its part sell its shares in: i) Banco di Napoli; ii) the insurance banking company Bnl Vita.
• The company will also put an end to the distribution agreements with the companies whose shares it will sell and it undertakes not to conclude new agreements with these companies, or with their buyers in the two years following acquisition.
• Generali undertakes not to appoint as members of its Executive Committee persons holding operating or corporate functions in other insurance companies operating in Italy or in its own Executive Committee or in the INA board and Executive Committee. The Commission stresses in this respect in its press release that the Chairman of San Paolo IMI, and the vice-presidents of Toro Assicurazioni and Banca Intesa have already resigned from the INA management board.

Generali took over control of INA on 14 December following a public purchase bid but suspended concentration at the request of the European Commission. The European competition services examined, in cooperation with the Italian anti-trust body, the risks of a dominant position in the life insurance sector, mainly through banking distribution networks and agencies held by the two companies. The investigation highlights among other things that Generali/INA hold one quarter of the bank outlets existing in Italy. For this reason, the Commission had envisaged going on to a more detailed inquiry lasting four months. But, at the end of the day, the latest commitments undertaken by Generali were considered as sufficient for the operation to be cleared immediately.