By Adria Calatayud

Italy's Mediobanca said it received approval from the European Central Bank to pursue an acquisition of smaller peer Banca Generali.

The ECB's green light comes ahead of a meeting of Mediobanca's shareholders, due to be held Thursday, to vote on the offer and as it seeks to fend off a hostile takeover bid from Banca Monte dei Paschi di Siena.

Mediobanca is offering to buy the banking arm of Italian insurer Assicurazioni Generali by swapping the stake it owns in the insurer for full ownership of Banca Generali, in a deal valued at 6.3 billion euros ($7.35 billion) at the time it was launched in late April.

The bank, formally called Mediobanca Banca di Credito Finanziario, said late Monday that, in addition to the ECB's approval, it received authorization from the Bank of Italy to acquire indirect control of Banca Generali subsidiaries as well as indirect shareholdings in affiliates.

Earlier this month, Mediobanca said the Italian Competition Authority wouldn't launch an investigation into its proposal to acquire Banca Generali, effectively clearing the offer without conditions.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

August 19, 2025 01:31 ET (05:31 GMT)

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