Investing.com-- Italy’s Mediobanca (BIT:MDBI) said on Monday it will submit a 6.3 billion euros ($7.16 billion) all-share offer to acquire Banca Generali (BIT:BGN), a deal that could potentially create a European wealth management giant.
Banca Generali is a private bank controlled by the country’s top insurer, Assicurazioni Generali (BIT:GASI).
Shares in Banca Generali surged around 8% in early trading, while Mediobanca added 1.6% as of 07:31 GMT.
Under the deal, Mediobanca will exchange shares it holds in insurer Assicurazioni Generali for Banca Generali stock, offering 1.70 Generali shares for each Banca Generali share. The offer implies an 11.4% premium to Banca Generali’s closing price on April 25.
The combined entity will oversee 210 billion euros in client assets and nearly 3,700 financial advisors, positioning it as Italy’s second-largest wealth manager, the company said in a statement.
The acquisition is expected to double Mediobanca’s wealth management revenues to 2 billion euros and quadruple profits from the division to 800 million euros, making it the group’s core business, the company said.
The transaction is subject to shareholder and regulatory approvals, with completion targeted by October 2025.
Ayushman Ojha contributed to this report.