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

Generali and the owner of France’s Natixis Investment Managers agreed to jointly create a European asset manager overlooking $1.979 trillion.

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.

The investment committee of Generali has given its green light to the Italian insurer's planned asset management deal with Natixis Investment Managers, two sources close to the matter said late on Sunday.

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.

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.

French banking group BPCE and Italian insurer Generali have reached an agreement to combine their asset management businesses, a move that will create a €1.9tn behemoth. The two groups said on 21 January that they had signed a non-binding memorandum of understanding to create a joint venture, with each owning 50% as part of a 15-year contract.