UK competition body opens probe into Aviva's Direct Line bid
The UK's Competition and Markets Authority (CMA) has launched a probe into Aviva's proposed £3.7bn acquisition of Direct Line.
The competition watchdog said it is investigating whether the merger would lead to a 'substantial lessening of competition within any market or markets in the United Kingdom for goods or services".
'To assist it with this assessment, the CMA invites comments on the transaction from any interested party,' it added.
The CMA is seeking feedback from interested parties by 29 May, with its findings from the initial phase of the probe due to be published in July.
The two insurers agreed on the merger in December last year, with Aviva offering £3.6bn, or 275 pence per share.
Direct Line shareholders would own nearly 12.5% of the issued and to be issued share capital of the combined company.
The deal would consolidate Aviva's position in the UK motor insurance market, creating a group with a combined market capitalisation of approximately £16.6bn, according to the Financial Times.
UK-based Aviva reported a profit of £705m for the year ended 31 December 2024, a 36% fall from £1.1bn in 2023.
At the time of results announcement in February, Aviva Group CEO Amanda Blanc said: 'The proposed acquisition of Direct Line is on track and is a clear opportunity to accelerate our capital-light growth, deliver brilliant service to millions more customers and support the wider development of the UK economy."
"UK competition body opens probe into Aviva's Direct Line bid " was originally created and published by Life Insurance International, a GlobalData owned brand.
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