The UK’s Competition and Markets Authority (CMA) has approved Aviva’s £3.7bn ($5bn) acquisition of Direct Line, concluding its review of the proposed merger.  

CMA’s decision follows an investigation initiated this May to determine whether the transaction would lead to a significant lessening of competition in the market.

The authority has determined that the merger does not require a second-phase investigation.  

CMA had invited submissions from interested parties during its review. 

Aviva reached an agreement in December 2024 to acquire Direct Line, a major UK insurer with brands such as Churchill and Green Flag.  

The offer will result in Direct Line shareholders holding nearly 12.5% of the combined company’s issued and to-be-issued share capital. 

The acquisition is effective as of yesterday (1 July), with Direct Line’s shares expected to be delisted and cancelled tomorrow, reported the Wall Street Journal.  

Two weeks prior, Aviva secured approvals from the Financial Conduct Authority, the Prudential Regulation Authority, and the Solicitors Regulation Authority. 

An earlier report from the Financial Times suggested that the merger forms a group with a combined market capitalisation of about £16.6bn in the UK motor insurance market. 

In its first-quarter 2025 financial results, Aviva reported a 9% rise in general insurance premiums, totalling £2.9bn, compared to £2.7bn in the same period of the previous year.