The decision marks an important milestone in UniCredit’s takeover of Commerzbank, the Milan-based bank said in a statement from Milan on Friday.

With the approval of the banking supervisors, the Italian lender can convert the Commerzbank shares it secured in the summer via an exchange offer into its own shares. This clears the way for UniCredit to continue increasing its stake without an upper limit.

The decision also underlines the ECB’s positive assessment of the transaction, as well as confidence in UniCredit’s solid fundamentals and strong position within the European banking sector, it added.

The remaining regulatory procedures and conditions for completing the Commerzbank offer are expected to be finalised by the end of the year, according to the statement. At that point, UniCredit will hold around 50 percent of the voting rights in Commerzbank and will be able to take control of the bank.