CMA to launch investigation into Aviva DLG merger

The Competition and Markets Authority (CMA) has launched an inquiry into Aviva’s planned acquisition of Direct Line Group (DLG).

The CMA announced today (14 May 2025) that it had started its phase one inquiry into the deal, which would combine the two insurers’ UK insurance operations.

The CMA now has up to 40 working days to assess the deal as part of a phase one investigation.

This review is designed to identify whether the deal may lead to a “realistic prospect of a substantial lessening of competition”.

On its website, the regulator said: “The CMA is considering whether it is, or may be, the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”

This is a necessary procedural step in all merger investigations, which occurs once the CMA has sufficient information to start the phase one inquiry.

It does not indicate any specific competition concerns with the deal at this stage.

Deal details

Aviva and DLG announced that they had agreed on the terms of a cash and share offer in December 2024.

Under the terms of the deal, for each DLG share held, shareholders will receive 0.2867 new Aviva shares and 129.7 pence in cash.

Aviva said that the acquisition was progressing in line with expectations, “with completion anticipated in mid-2025”.

If the CMA finds no competition concerns following its phase one review, it will clear the transaction to complete.

Should the CMA finds concerns and determine that the merger should be referred to phase two, the merging businesses will have an opportunity to propose remedies or address such concerns.

If accepted, the merger will not be referred.