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Aviva's £3.7bn takeover of Direct Line given green light

Tue 01 July 2025 09:41 | A A A

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(Sharecast News) - Aviva's 3.7bn takeover of smaller rival Direct Line Insurance Group has been cleared by the competition watchdog, it was confirmed on Tuesday, the final hurdle facing the tie-up.

The two companies first agreed to join forces in December last year.

The deal will create one of London's largest listed insurers, with around 20% of the UK home and motor insurance market.

The Competition and Markets Authority first launched an investigation in May.

But on Tuesday it confirmed the combination would not result in a "substantial" lessening of competition and cleared the takeover.

The deal has already received the backing of both the Financial Conduct Authority and Prudential Regulation Authority.

The deal is now set to complete potentially as early as Tuesday.

The CMA flagged last month that it was minded to approve the deal, shortly after the FCA and PRA cleared it.

As at 0930 BST, shares in Aviva were largely flat at 620.4p.

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