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UGF-PREMAFIN: Antitrust launches inquiry and suspends the operation until proceedings are concluded


PRESS RELEASE


PRESS RELEASE

UGF-PREMAFIN: ANTITRUST LAUNCHES INQUIRY AND SUSPENDS THE OPERATION UNTIL  PROCEEDINGS HAVE CONCLUDED

Flat suspension to evade potentially irreversible effects. The merger is also being examined in light of the ties it would create between Mediobanca and the new group and the existing ties between Mediobanca and Generali.

In a meeting on 26 April 2012, the Autorità Garante della Concorrenza e del Mercato decided to initiate investigatory proceedings into the merger plan for UGF (Unipol financial group) and Gruppo Premafin, suspending the operation in the meantime. Based on article 17 of the organic statute of the Antitrust and already applied by the Authority in other cases, the suspension was applied to prevent the capital of the corporations involved from suffering potentially irreversible effects as a consequence of the next steps of the operation, considering a possible denial or an authorization with conditional measures. It could likewise result in potentially irreversible effects for the related markets by changing the competitive relationships between the interested operators, the UGF group and Gruppo Premafin, not to mention the integrity and autonomy of the UGF and Premafin group members;

According to the Antitrust, the merger of the UGF group and the Premafin group is susceptible to the creation or reinforcement of a dominant position in various markets in the insurance sector - in regard to both the production (for the third-party motor liability branch in particular) and distribution phases in 93 provinces - that would eliminate or restrict competition in substantial and enduring ways.

According to the Authority, the operation will also be examined in light of the ties (financial, shares and personnel) that would be created between Mediobanca and the UGF/Premafin group, on the one hand, and the existing ties between Mediobanca and Generali, on the other. The impact of the merger, in fact, will also need to be assessed in terms of the risk of disincentivizing the Generali group to compete with the post-merger entity. For this reason the Antitrust has decided to include both Mediobanca and Generali in the proceedings.

The inquiry shall be concluded within 45 days, without prejudice to the time allowed for issuing of the ISVAP opinion.

 

Rome - 26 April 2012