Mediobanca has launched a bid to acquire 100% of the shares of Italian private bank Banca Generali for €6.3bn ($7.15bn).

The Italian investment bank looks to fund the transaction entirely through its stake in Assicurazioni Generali.

Mediobanca plans to divest its stake in Assicurazioni Generali, with the proceeds reinvested into Banca Generali.

A general meeting of Mediobanca shareholders to approve the transaction is scheduled for 16 June 2025.

The merger is expected to establish a major entity in the European market.

Mediobanca holds a 13% stake in Generali, valued at approximately €6.5bn ($7.3bn), making it the largest investor in the company, which contributes over a third of Mediobanca’s income.

Generali owns 50.2% of Banca Generali. Mediobanca reported that the two directors appointed by Delfin, its primary investor, did not support the bid for Banca Generali, reported Reuters.

This initiative aligns with Mediobanca’s “One Brand-One Culture” strategy, aiming to strengthen its position in the wealth management sector, which will encompass total financial assets of €210bn ($238.5m) and annual revenues of €2bn ($2.27bn), alongside a net new money inflow exceeding €15bn ($17.04bn) annually.

In a statement, Mediobanca Group said that wealth management is poised to be its “core business” if the acquisition goes through.

The group projects wealth management revenue growth to double to €2bn ($2.27bn), representing 45% of total consolidated revenues.

Additionally, net profit is expected to increase fourfold to €0.8 ($09bn), making up 50% of the group’s overall net profit.

Expected synergies from the merger are estimated at around €300m ($340.8m), with 50% attributed to cost reductions, 28% to revenue enhancements, and 22% to funding efficiencies.

Meanwhile, earlier this year, Mediobanca itself rejected Banca Monte dei Paschi di Siena’s buyout bid, citing lack of industrial and financial rationale. The board deemed the offer “destructive” after a thorough review.