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UK Regulator Approves Aviva’s £3.7 Billion Takeover of Direct Line

By  |  July 1, 2025

Aviva has secured final approval from the U.K.’s competition watchdog to proceed with its acquisition of Direct Line, marking a key step in a deal valued at approximately £3.7 billion ($5.08 billion), according to the Wall Street Journal.

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    The Competition and Markets Authority (CMA) announced Tuesday that it will not escalate its investigation into the proposed merger, deciding against launching a more detailed phase-two review. The CMA had previously initiated a probe to determine if the deal might hinder market competition in the U.K. insurance sector. Per the Wall Street Journal, the regulator ultimately concluded that the transaction would not significantly lessen competition.

    Read more: Aviva’s £3.7 Billion Takeover of Direct Line Set to Complete in July Amid Regulatory Scrutiny

    The acquisition, which brings together two major players in the U.K. non-life insurance market, includes well-known brands such as Churchill, Green Flag, and Direct Line itself. Aviva initially made its offer late last year, aiming to expand its footprint in key segments including car, home, and pet insurance.

    Earlier this month, Aviva received the green light from the Financial Conduct Authority, the Prudential Regulation Authority, and the Solicitors Regulation Authority. Confident of CMA approval, the company had waived the requirement to wait for the final competition clearance, according to Wall Street Journal.

    Source: Wall Street Journal