Italy's Generali and France's BPCE said on Tuesday they had taken the first step towards creating Europe's largest asset manager by revenue as the industry bets on size to protect profit margins. The

Italy’s Generali and the owner of France’s Natixis are set to combine their asset management operations to create a European giant overlooking 1.9 trillion euros ($1.979 trillion) in assets.The Italian insurer and French retail bank Groupe BPCE signed a preliminary deal underpinned by 15-year contracts to form a joint venture they will each own a 50% of.

PRESS RELEASE BPCE and Generali to Create the Largest Asset Manager in Europe by revenues and a Major Player Worldwide Milan & Paris, 2125 – Assicurazioni Generali S.p.A. (“Generali”) and BPCE today announce that they have signed a non-binding Memorandum of Understanding (“MoU”) to create a joint venture between their respective asset management operations Generali Investments Holding (“GIH”)1 and Natixis Investment Managers (“Natixis IM”).

The board of Italy's top insurer Generali has approved a memorandum of understanding (MoU) that paves the way for an asset management deal with BPCE's Natixis Investment Managers to crate a European champion,

Under the terms of the tie-up, BPCE and Generali Investments will combine their asset management operations in a 50-50 joint venture, people familiar with the situation said. A non-binding preliminary agreement could be reached as early as next week. It would still need to be approved by the relevant unions and authorities.

With €1.9tn in AUM, the joint venture would allow the pair to expand globally and speed up a push into private markets.

Italy's top insurer Generali aims to reach a preliminary accord with Natixis Investment Managers to combine their asset management operations in order to submit the deal to its board on Jan. 20, two people close to the matter said.

Generali and BPCE have signed a non-binding memorandum of understanding for each to own 50% of the joint venture

Assicurazioni Generali SpA and Natixis SA are close to a deal for a joint venture in asset management to cut costs and team up on distribution, according to people familiar with the matter.

Italian insurer Generali and French insurer BPCE signed a memorandum of understanding on Tuesday to combine their asset management operations, a first step towards creating Europe's largest player in the sector by revenue,