Generali 8.71% share acquisition of Banco CTT to finalise in October

The Italian insurance group Generali, which announced that it had acquired a 8.71% capital share in Portugal’s CTT financial services company Banco CTT two years ago, will finally see the deal go through in the autumn.

After months of negotiations all the hurdles and obstacles over products and services that slowed the process have been met and the European Central Bank is expected to give the green light for the deal at the beginning of the fourth quarter so that it can be closed in October.

Neither the ECB nor Generali have chosen to make any comments about the deal while an official source at CTT say they will calmly await authorisation from the regulator.

In November 2022 Generali announced the purchase of 8.71% of Banco CTT via a €25 million capital increase.

CTT revealed in a communiqué at the time that Portuguese insurer Tranquilidade would be part of the deal with a parasocial agreement that would confer a number of minority rights in line the size of the shareholding.

Apart from the qualified shareholding, the partnership insurance distribution agreements both at the postal and parcels business and the financial services business according to business daily Negócios.

In April, the CEO of CTT, João Bento explained Generali’s entry in Banco CTT was a process in which CTT was very dedicated to because it represented an increase in the company’s capital from the insurer.