FCA and PRA give green light to Aviva’s £3.7bn DLG takeover

The FCA and Prudential Regulation Authority (PRA) have both given the green light for Aviva’s £3.7bn acquisition of Direct Line Group (DLG).

In a statement released this morning (17 June 2025), DLG and Aviva said that the two regulators “have each given written notice to Aviva approving the acquisition of control in respect of a UK authorised person contemplated by the acquisition”.

Aviva added that, following constructive engagement with the Competition and Markets Authority (CMA), it “remains confident of securing unconditional clearance by the phase one statutory deadline”. 

The regulator announced in May 2025 that it had started its phase one inquiry into the deal.

This review, which is a necessary procedural step in all merger investigations, is designed to identify whether the deal may lead to a “realistic prospect of a substantial lessening of competition”.

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

Next steps

This comes after DLG announced in March that, at a court meeting and general meeting, all shareholder resolutions relating to the acquisition were approved by the requisite majorities.

Ahead of the vote, a scheme document was put together, with it being intended that the acquisition will be implemented by way of a court-sanctioned scheme of arrangement under part 26 of the Companies Act.

This can be used to action the reorganisation of a company or group structure and requires approval by at least 75% to be effective.

Aviva and DLG said that a sanction hearing had been scheduled for 1 July 2025, which will see a judge review and decide whether to officially approve the scheme of arrangement.

Both firms said the scheme is expected to become effective on the same date.