Italian lender Unicredit is close to selling a majority of its stake in Poland’s Pekao SA to state-controlled PZU, according to a report by the Wall Street Journal.

The deal in valued at PLN 11 billion (USD 2.88 billion), and would see UniCredit offloading a 30% stake in Pekao to PZU, the largest insurer in the CEE region, according to sources close to the matter.

If the deal goes through, UniCredit would retain a 10% stake in the Polish bank, the paper said.

Both UniCredit and PZU declined to comment on the issue.

Poland’s Law and Justice (PiS) government has vowed to increase its control of the country’s banking industry.