Britain’s Competition Regulator Clears Aviva’s Acquisition of AIG Life UK

Britain’s competition regulator announced its decision not to pursue an in-depth investigation into Aviva’s acquisition of AIG Life UK, signaling a green light for the deal to proceed.

Aviva, one of the prominent players in the UK insurance market, reached an agreement last September to acquire the UK life insurance arm of American International Group (AIG) for a substantial sum of 460 million pounds ($580.43 million), as reported by Reuters.

The acquisition was poised to significantly bolster Aviva’s standing in the industry, with expectations to integrate approximately 1.3 million individual protection customers and 1.4 million group protection members into its existing business infrastructure, according to statements released by Aviva at the time of the deal.

Amidst this backdrop, Britain’s Competition and Markets Authority (CMA) made a crucial determination regarding the transaction. In a statement issued on Thursday, the CMA revealed its decision not to initiate a ‘phase 2’ investigation into the merger. This decision was made based on the information presently available to the regulator, as outlined under the provisions of the Enterprise Act 2002.

The CMA’s decision not to proceed with further investigation indicates a vote of confidence in the merger, suggesting that it does not raise significant concerns regarding competition within the UK insurance market.

Source: Reuters