Mediobanca will be expected to present the ECB with a detailed integration plan within a six-month period. Credit: T. Schneider/ Shutterstock.

Italian merchant bank Mediobanca has received authorisation from the European Central Bank (ECB) to proceed with the €6.3bn purchase of Banca Generali.  

The ECB also granted approval for the purchase of both direct and indirect stakes that collectively exceed 10% of the consolidated own funds of the Mediobanca Banking Group. 

Following the acquisition, Mediobanca will be expected to present the ECB with a detailed integration plan within a six-month period.  

This plan must include the envisioned measures for integration, a timeline for the activities, and an IT integration strategy, among other requirements. 

Additionally, the ECB has clarified that Banca Generali will be classified as a “significant supervised entity” once Mediobanca acquires de jure control, placing it under the ECB’s direct supervision. 

The decision to acquire Banca Generali is part of Mediobanca’s strategy to prevent a takeover by Monte dei Paschi di Siena (MPS), which had offered €13.3bn in an all-share buyout bid for Mediobanca earlier this year.  

Mediobanca dismissed this bid as “destructive” for the business and said it lacks “industrial and financial rationale” for its shareholders. 

To finance the acquisition, Mediobanca intends to divest its holdings in the insurance arm of Generali.  

Mediobanca, along with key investors the Del Vecchios and the Caltagirones, are significant shareholders in Generali.  

Mediobanca is set to conduct a shareholder vote on the proposed acquisition of Banca Generali on 21 August.  

This step is mandated by Italian takeover regulations, especially given the ongoing bid from MPS, which could potentially escalate in expense should the acquisition of Banca Generali be successful. 

Earlier this month, Generali, which holds a 50.2% stake in Banca Generali, has signalled a willingness to engage in further discussions regarding Mediobanca’s proposal.  

The insurer has committed to evaluating the offer in accordance with its internal review processes in the upcoming weeks.