The Italian Competition Authority clears a major insurance merger by imposing a set of stringent remedies.
By a decision made on 19 June 2012 ( Case C11524, UGF-Premafin) the Italian Competition Authority (ICA) has conditionally cleared the Unipol Gruppo Finanziario (UGF) acquisition of Premafin Fondiaria (Fondiaria). The notified merger would negatively affect several insurance markets giving or strengthening the UGF dominant position. To avert such negative effects the ICA conditioned the approval of the merger on the implementation of a set of stringent structural and behavioural remedies on the merging parties and on Mediobanca. Mediobanca not only controlled Assicurazioni Generali (AG), the next competitor of the merged entity, but it was also the main funder of the merging parties. The competition problems of the merger The ICA based its concerns about the competition impact of the proposed merger on the market collectively held by the merging parties and the results of the HHI test. The ICA found that the merger would restrict competition in many non-life and life ins...