ECB green light for Mediobanca's takeover bid for Banca Generali

The ECB has given the go-ahead for the acquisition of Banca Generali by Mediobanca. This was announced by Piazzetta Cuccia, underlining that Frankfurt authorises Mediobanca to "acquire direct control of Banca Generali" while Bankitalia gives the green light to acquire indirect control and a qualified shareholding in the subsidiaries Generfid, Intermonte, Nextam, 8a+ Investimenti and Tosetti Value. Mediobanca is required to present an integration plan within six months of the acquisition of Banca Generali, which, following the acquisition, will be subject to direct supervision by the ECB.

The ECB also granted authorisation for the acquisition of direct and indirect shareholdings that, in total, exceed 10 per cent of the Mediobanca Group's consolidated equity. The integration plan to be submitted to the ECB will have to contain information 'on the measures and solutions envisaged for the integration, including the definition of organisational structures and processes to ensure effective operational alignment'.

In the plan, Mediobanca must also provide the timeline for the integration activities, with particular attention to the 'strengthening and rationalisation of the internal control system'. Mediobanca must also specify 'the estimated implementation costs, the outsourced activities and related exit strategies, the organisational structures and processes involved in the supervision of IT risk, the measures to ensure IT security and data quality, and business continuity'. Finally, the plan must include the estimated impacts on capital requirements, including 'any deviations from initial assumptions' and a 'governance framework' for the integration process.