The Competition and Markets Authority (CMA) has given the green light to Aviva's acquisition of Direct Line, a smaller insurance competitor. This approval clears the path for the creation of the 海角视频's largest home and motor insurer.
The CMA announced on Tuesday that the £3.7bn takeover would not be subjected to a phase-two investigation, as reported by
This follows an initial examination to determine whether the merger would diminish competition in the 海角视频 insurance market.
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The takeover came into effect on Tuesday, with Direct Line shares expected to be delisted and cancelled by Thursday.
Aviva and Direct Line agreed on the terms of the acquisition in December 2024.
The deal valued Direct Line shares at 275p, representing a 73 per cent premium on the company's share price before the offer and a 50 per cent premium on its six-month average share price.
Direct Line had previously turned down an offer that valued shares at 250p each.
As part of the deal, Direct Line shareholders will receive 129.7p in cash and a 5p dividend for each share they own, as well as 0.3 new Aviva shares.
CMA facing scrutiny
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Despite the CMA's approval of the deal, there is increasing speculation that the regulator's powers may be curtailed as the government seeks to stimulate economic growth.
The watchdog is one of 17 regulators that Labour has asked to propose ways to alleviate the burden on businesses.
Marcus Bokkerink, Chair of the CMA, was unceremoniously removed from his position in January, in a move widely regarded as the "most overtly political" regulatory intervention in recent memory.
The Business Secretary defended this decision, stating: "This government has a clear plan for change – to boost growth for businesses and communities across the 海角视频.
As we've set out, we want to see regulators including the CMA supercharging the economy with pro-business decisions that will drive prosperity and growth, putting more money in people's pockets."