• UK CMA is investigating the anticipated takeover by Aviva plc of Direct Line Insurance Group plc, to assess whether it may be the case the transaction will result in creation of a relevant merger situation under Enterprise Act 2002 merger provisions.

Takeover Overview

• Aviva's planned takeover of Direct Line in a £3.7bn deal was agreed in Dec. 2024.
• The combined insurance firms would be a significant force in the car insurance sector.
• If the Aviva and Direct Line deal goes ahead, it would boost the merged entity's dominance in the insurance market against rivals like Legal & General and Prudential.
• Combined company would result in an insurer with more than 20% of share of home and motor insurance in the UK; Direct Line owns Churchill and Green Flag brands.
• As well as its namesake brand as part of portfolio of car, pet, home, other insurance.

Merger Inquiry

• CMA announced the launch of its merger inquiry by notice to the parties on 14 May.

Effectiveness

• CMA invited comments until 29 May 2025; initial probe due to end by 10 July 2025