Insurance giant Assicurazioni Generali is on its way to acquiring its smaller rival Cattolica to strengthen its presence in the Italian insurance market.

Generali, which already owns a 24% stake in the insurer, will acquire 138,842,677 shares of Cattolica increasing its stake to 84.475%.

As per the announcement, Generali will offer €6.75 per share in cash to shareholders on 5 November 2021.

Generali Group CEO Philippe Donnet said: “The success of this transaction will further strengthen Generali’s leadership in the Italian insurance market and its position among the largest European insurance groups, in line with the objectives of the ‘Generali 2021’ strategic plan.

“The transaction will make it possible to further integrate the business models of Generali and Cattolica, as has already transpired since the creation of the partnership signed in June 2020 and will deliver significant value creation for all stakeholders.”

Generali, which made a €300m investment in Cattolica last year launched a €1.17bn buyout offer for Cattolica earlier this year.

Last month, Warren Buffett’s Berkshire Hathaway, which is the second-largest investor in Cattolica tendered its 6.93% stake in the insurer.

Generali Italia and Global Business Lines country manager & CEO Marco Sesana said: “The transaction with Cattolica will provide support for the real economy whilst generating benefits for all stakeholders, notably customers and employees. The transaction will make it possible to further enhance the distinctive capabilities of Cattolica, through the use of the technology and innovation of Generali Italia.”

Earlier this year, the Italian insurer brokered deals to buy a majority stake in AXA Affin joint ventures and to acquire 100% of MPI Generali to strengthen its Malaysian operations.