Unipol and Fondiaria group reveal four-way merger
A four-way merger between the Fondiaria group and Unipol has been announced.
Merger and acquisition advisors may soon be utilised by Italian insurance firm Unipol, as it has agreed upon a four-way merger with Fondiaria-SIA, a peer group that is facing difficulty.
This is according to Reuters, which claimed this would involve increases of capital for Unipol, Premafin and Fondaria-SIA that could reach higher than €2 billion (£1.65 billion).
It would also create one of the leading insurance groups in the country, while providing creditor banks with succor.
If it agrees upon the deal, which would involve Unipol purchasing 51.3 per cent of Permafin for €76.9 million at a 26 per cent premium, the company would control 32 per cent of all Italian non-life insurance and ten per cent of its life insurance, analysts from Mediobanca stated in a research note.
However, this merger will not involve the sale of Unipol's banking group, chief executive of the firm said in an interview with Italy's Milano Finanza newspaper.
Posted by Edel Quinn
Source: Reuters, January 13th