Aviva Plc’s plan to buy Direct Line Insurance Group Plc for roughly £3.7 billion ($5.09 billion) to create the UK’s largest motor insurer has been given the nod from the country’s competition regulator.
The Competition and Markets Authority said in a statement that it has decided, on the information currently available to it, not to refer the above merger to a phase 2 investigation. The text of its decision will be made available as soon as is reasonably practicable, the CMA said.
Direct Line and Aviva together are poised to surpass their biggest motor insurance competitor Admiral, according to some estimates. Bloomberg Intelligence has said previously that the deal could double Aviva’s share in that market.
Read more: Aviva’s £3.7 Billion Direct Line Deal Faces UK Merger Review
Bromley, England-based Direct Line sells insurance under its eponymous brand as well as through units including Churchill, Green Flag, Privilege and Darwin Motor Insurance. In addition to car insurance, it also offers home, travel, pet and life insurance as well as offering cover for businesses.
Photograph: The Direct Line app. Photo credit: Jose Sarmento Matos/Bloomberg
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