ASSICURAZIONI GENERALI SpA is preparing to make a formal bid for European assets of MetLife, Inc. after months of talks on the potential acquisition, people with knowledge of the matter said.

The Italian insurer has been finishing due diligence and is targeting to make an offer for most of MetLife’s business on the continent by yearend, according to the people.

A deal could be valued at about €3 billion ($3.3 billion), one of the people said, asking not to be identified because the information is private.

No final agreements have been reached, and discussions could still fall apart, the people said. Representatives for Generali and MetLife declined to comment.

Bloomberg reported earlier this year that Generali was in early stage talks to buy the central and eastern European assets of MetLife for more than €2 billion as part of its plans to expand through acquisitions.

Generali has said that it’s willing to consider “disciplined M&A to support profitable growth” to reinforce its leading position in Europe or enter new countries as one of the top-five players in that market. Expansion is one of the pillars of Chief Executive Officer Philippe Donnet’s strategy as dealmaking reshapes the insurance industry.

Poland accounts for one of MetLife’s largest operations in the Europe, Middle East and Africa region, according to a company filing.

In 2012, MetLife agreed to buy life insurance businesses from Aviva Plc in the Czech Republic and Hungary, as well as Aviva’s life insurance and pension operations in Romania. — Bloomberg