Wed, 14 May 2025

Wed, 14 May 2025 Probe launched into Aviva's £3.7bn takeover of Direct Line

Britain's competition watchdog wants to review a £3.7bn deal that would see Aviva takeover Direct Line.

* A merger could result in a "substantial lessening" of competition in the insurance sector, according to the CMA.
* The combined companies would become a significant force in the car insurance sector, with over 20% market share.
* Aviva shareholders would own 87.5% of the new company, while Direct Line shareholders would own 12.5%.
* The deal would boost Aviva's dominance in the UK insurance market against rivals such as Legal & General and Prudential.
* Individuals or companies impacted by the deal can provide feedback to the CMA by May 29.
* The CMA will report its findings on July, which could potentially set back the £3.7bn deal.
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