By Giada Zampano and Giovanni Legorano
ROME--Italy's antitrust authority Wednesday gave its approval
for a plan by insurer Unipol Gruppo Finanziario SpA (UNI.MI, UFGSY)
to take over troubled peer Fondiaria-SAI SpA (FSA.MI) and its
related entities under certain conditions.
The watchdog said the newly merged group would have to unwind
its ties with Italian investment bank is Mediobanca Banca di
Credito Finanziario SpA (MB.MI, MDIBY) and sell assets to avoid a
possible dominant position in the Italian insurance market.
Unipol agreed in January to a deal brokered by Mediobanca to
rescue Fondiaria and create Italy's second-largest insurer after
Assicurazioni Generali SpA (G.MI).
Under the merger deal, Unipol will take a 61% stake in the new
business, Fondiaria-SAI will get 27.45%, Milano Assicurazioni SpA
will have 10.7% and Fondiaria SAI's parent, Premafin Finanziaria
SpA Holding di Partecipazioni (PF.MI), will have 0.85%.
Premafin owns 4% of Mediobanca.
The Italian watchdog said Unipol would have to sell insurance
portfolios and agency networks, with the newly created group asked
to reduce its national and regional market share in the various
insurance sectors to below 30%.
FonSAI also will have to sell its stakes in Mediobanca and
Generali to get antitrust clearance.
Mediobanca, which has lent FonSAI more than EUR1 billion ($1.3
billion) and is backing the Unipol plan, is also Generali's top
shareholder.
The antitrust watchdog also asked Unipol and FonSAI to break
ties with UniCredit SpA(UCG.MI, UNCFF), which leads a pool of banks
that lent Premafin a total of EUR322 million.
Write to Giada Zampano and Giovanni Legorano at
giada.zampano@dowjones.com