Latest news with #AdamWinslow
Business Mayor
16-05-2025
- Business
- Business Mayor
UK watchdog launches investigation into Aviva's £3.7bn takeover of Direct Line
The competition watchdog has launched an investigation into Aviva's multibillion-pound takeover of the rival insurer Direct Line. The £3.7bn deal, which was agreed last year, will combine the insurance operations of both companies, in a move that is expected to create one of the biggest car insurers in the country. The Competition and Markets Authority started its phase 1 investigation into the takeover on Wednesday, a procedural step that gives it up to 40 working days to evaluate the deal's possible impact on competition in the sector. The deadline is set for 10 July, at which point the regulator will either give the merger the green light or proceed to a more in-depth phase 2 investigation. Aviva, the UK's biggest insurer, agreed to buy the rival Direct Line for £3.7bn last year. Aviva's chief executive, Amanda Blanc, has expanded its business in the UK, Ireland and Canada, while selling off subsidiaries abroad. Both companies are among the biggest insurers in the UK. Direct Line, which owns brands such as Churchill and Green Flag, also offers home, travel, pet and life insurance. Aviva sells a range of insurance, wealth and retirement products and has more than 20 million customers. Adam Winslow, who became the chief executive of Direct Line just over a year ago, joined from Aviva where he was head of its UK and Ireland general insurance division. Aviva and Direct Line told investors last year they planned to cut 5-7% of the combined group's employee base over three years, equivalent to between 1,600 and 2,300 jobs out of about 33,100. The companies said at the time that the ultimate number of affected roles could be lower because of unfilled vacancies and annual turnover of staff. Prior to the deal, Direct Line had also been undergoing its own turnaround efforts. In November the company said it would axe about 550 jobs in an effort to cut costs. The insurer said 'core brands' such as Churchill would be maintained in the merged group. skip past newsletter promotion Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion The takeover is the latest big blockbuster deal for Aviva, which bought the rival Friends for Life for £5.6bn in 2014.
Daily Mail
14-05-2025
- Business
- Daily Mail
Competition watchdog to probe Aviva's £3.7bn takeover of insurance rival Direct Line
Britain's competition regulator has launched a probe into Aviva's £3.7bn takeover of insurance rival Direct Line. The combined company would control more than a fifth of the UK home and insurance markets, according to analysts. The Competition and Markets Authority (CMA) will now investigate whether the deal will mean 'a substantial lessening of competition'. After a preliminary probe it must decide by July 10 whether to proceed with a full-scale competition probe that could take months. Insiders remain confident that the deal will complete by the middle of the year. The CMA is unlikely to intervene further given that the market share of the enlarged group will be less than 25 per cent of the market, they argue. Aviva declined to comment. The deal, if concluded, would represent Aviva boss Amanda Blanc's most ambitious corporate transaction to date. Blanc is seen as having turned around the FTSE 100 group's fortunes, bulking up in key markets such as Britain, Ireland and Canada while selling assets in other countries. Direct Line chief executive Adam Winslow previously had a senior role under Blanc at Aviva. He took over in March last year and fended off a takeover approach from Belgium's Ageas and cut hundreds of jobs to help it recover from previous woes. Direct Line suffered a turbulent period when its profits were battered by a rise in the cost of claims – and previous boss Penny James quit in 2023. The company, which also owns the Churchill and Green Flag brands, offers car and home insurance as well as pet and home policies. Last November it rejected a £3.3billion approach from Aviva before succumbing when Blanc made an improved offer over the Christmas period. The deal could spell 2,300 job cuts, the companies warned. Winslow may also face an uncertain future should the deal complete. Direct Line shareholders voted in March to approve the takeover. The CMA announcement comes as Aviva prepares to issue a first-quarter trading update today. Shares in Aviva fell 0.4 per cent, or 2.2p, to 572p. Direct Line slipped 0.6 per cent, or 1.6p, to 287.4p.
North Wales Chronicle
14-05-2025
- Business
- North Wales Chronicle
Probe into Aviva's £3.7bn deal for Direct Line launched by competition watchdog
The Competition and Markets Authority (CMA) said it had kicked off an initial probe into the deal to look at whether it would result in a 'substantial lessening of competition' in the sector. The CMA said it will report back with its findings by July 10. The watchdog will now gather comments on the deal from all interest parties, with a deadline for responses of May 29. FTSE 100 firm Aviva and its smaller rival Direct Line agreed the deal on December 23 last year, after a £3.3 billion bid was turned down in November. The combined group would be a significant force in the motor insurance sector, estimated to cover more than a fifth of the total UK market. Direct Line owns the Churchill and Green Flag brands, as well as its namesake brand as part of a portfolio offering car, pet, home and other insurance policies. We've launched an investigation into Aviva's purchase of Direct Line. Read more: — Competition & Markets Authority (@CMAgovUK) May 14, 2025 But the scale of the combined group and its share of the market has caught the attention of the CMA. The takeover has also caused concerns among workers at the two firms after Aviva revealed at the end of last year that around 2,300 jobs would be at risk after the Direct Line deal amid cost-cutting efforts in the wake of the deal. The takeover will see Aviva pay 129.7 pence in cash and 0.2867 of its own shares for each Direct Line share. It will also pay up to 5p in dividend payments per share to Direct Line shareholders as part of the deal. Aviva shareholders will own approximately 87.5% of the new company while Direct Line shareholders will own about 12.5%. Before the Aviva deal was agreed, Direct Line had already fended off a takeover attempt by Belgian company Ageas earlier in 2024. Chief executive Adam Winslow had joined Direct Line in March with the goal of turning it around, having been appointed following the ousting of Penny James from the top job. Direct Line has since announced £100 million of cost cuts and axed 550 jobs.
Glasgow Times
14-05-2025
- Business
- Glasgow Times
Probe into Aviva's £3.7bn deal for Direct Line launched by competition watchdog
The Competition and Markets Authority (CMA) said it had kicked off an initial probe into the deal to look at whether it would result in a 'substantial lessening of competition' in the sector. The CMA said it will report back with its findings by July 10. The watchdog will now gather comments on the deal from all interest parties, with a deadline for responses of May 29. FTSE 100 firm Aviva and its smaller rival Direct Line agreed the deal on December 23 last year, after a £3.3 billion bid was turned down in November. The combined group would be a significant force in the motor insurance sector, estimated to cover more than a fifth of the total UK market. Direct Line owns the Churchill and Green Flag brands, as well as its namesake brand as part of a portfolio offering car, pet, home and other insurance policies. We've launched an investigation into Aviva's purchase of Direct Line. Read more: — Competition & Markets Authority (@CMAgovUK) May 14, 2025 But the scale of the combined group and its share of the market has caught the attention of the CMA. The takeover has also caused concerns among workers at the two firms after Aviva revealed at the end of last year that around 2,300 jobs would be at risk after the Direct Line deal amid cost-cutting efforts in the wake of the deal. The takeover will see Aviva pay 129.7 pence in cash and 0.2867 of its own shares for each Direct Line share. It will also pay up to 5p in dividend payments per share to Direct Line shareholders as part of the deal. Aviva shareholders will own approximately 87.5% of the new company while Direct Line shareholders will own about 12.5%. Before the Aviva deal was agreed, Direct Line had already fended off a takeover attempt by Belgian company Ageas earlier in 2024. Chief executive Adam Winslow had joined Direct Line in March with the goal of turning it around, having been appointed following the ousting of Penny James from the top job. Direct Line has since announced £100 million of cost cuts and axed 550 jobs.
South Wales Argus
14-05-2025
- Business
- South Wales Argus
Probe into Aviva's £3.7bn deal for Direct Line launched by competition watchdog
The Competition and Markets Authority (CMA) said it had kicked off an initial probe into the deal to look at whether it would result in a 'substantial lessening of competition' in the sector. The CMA said it will report back with its findings by July 10. The watchdog will now gather comments on the deal from all interest parties, with a deadline for responses of May 29. FTSE 100 firm Aviva and its smaller rival Direct Line agreed the deal on December 23 last year, after a £3.3 billion bid was turned down in November. The combined group would be a significant force in the motor insurance sector, estimated to cover more than a fifth of the total UK market. Direct Line owns the Churchill and Green Flag brands, as well as its namesake brand as part of a portfolio offering car, pet, home and other insurance policies. We've launched an investigation into Aviva's purchase of Direct Line. Read more: — Competition & Markets Authority (@CMAgovUK) May 14, 2025 But the scale of the combined group and its share of the market has caught the attention of the CMA. The takeover has also caused concerns among workers at the two firms after Aviva revealed at the end of last year that around 2,300 jobs would be at risk after the Direct Line deal amid cost-cutting efforts in the wake of the deal. The takeover will see Aviva pay 129.7 pence in cash and 0.2867 of its own shares for each Direct Line share. It will also pay up to 5p in dividend payments per share to Direct Line shareholders as part of the deal. Aviva shareholders will own approximately 87.5% of the new company while Direct Line shareholders will own about 12.5%. Before the Aviva deal was agreed, Direct Line had already fended off a takeover attempt by Belgian company Ageas earlier in 2024. Chief executive Adam Winslow had joined Direct Line in March with the goal of turning it around, having been appointed following the ousting of Penny James from the top job. Direct Line has since announced £100 million of cost cuts and axed 550 jobs.
