The European Commission has given the green light for the proposed bancassurance and pensions joint venture between French insurance specialist AXA and Italian bank Banca Monte dei Paschi di Siena, media reports have revealed.

According to MarketWatch, under the terms of the joint venture, AXA will pay E1.15 billion for a 50% stake in Banca Monte dei Paschi di Siena’s (BMPS) life and non-life insurance units, Monte Paschi Vita and Monte Paschi Assicurazioni Danni. In addition, the insurer will also acquire a 50% stake in the bank’s open pension funds business.

As part of the deal, AXA will manage the jointly-owned business, as well as gain the management rights over the insurance pension assets. The transaction is expected to be financed by the group’s internal resources, reported Forbes.

The commission cleared the joint venture after conducting a simplified merger review, and concluded that the deal would not cause any competition concerns, Forbes revealed.