Italian Regulators Put Brakes On Insurance Merger

Law360, New York (April 27, 2012, 7:30 PM EDT) -- Italy's competition regulator on Thursday launched an investigation into a merger between Unipol Gruppo Finanziario SpA and the parent of Fondiaria-SAI SpA, suspending a tie-up that would create the country's second-biggest insurer.

In a statement, the Italian antitrust authority said the risks "the creation of a dominant position in the various markets of the insurance sector," and could greatly reduce competition.

Under the deal, Unipol would take a controlling stake in Fondiaria's parent, Premafin Finanziaria SpA Holding di Partecipazioni, the first in a series of capital...
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