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Insurance

Aviva to complete Direct Line takeover today after CMA green light

Aviva PLC's (LSE:AV.) £3.7 billion takeover of Direct Line Insurance Group PLC (LSE:DLG) has been waved through by the UK competition watchdog, meaning the deal has been given full regulatory clearance.

The Competition & Markets Authority confirmed on Tuesday that it is not going to refer the deal to a deeper 'phase 2' investigation, following an initial probe launched in May.

"The CMA has cleared the anticipated acquisition by Aviva plc of Direct Line Insurance Group plc. The full text of the decision will be published shortly."

Approval was expected, as Aviva had said last month that it had engaged in "constructive" talks with the CMA and was confident of securing unconditional clearance.

This was the last regulatory green light awaited for the deal, with Aviva already getting written approval from the Financial Conduct Authority and the Prudential Regulation Authority.

The final steps are the takeover sanction hearing, which also takes place today, resulting in the completion of the deal.

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