Aviva and Direct Line merger under scrutiny by CMA

Published 14/05/2025, 08:52
© Reuters.

Investing.com -- The Competition and Markets Authority (CMA) has initiated an inquiry into the proposed merger between Aviva plc (LON:AV) and Direct Line (LON:DLGD) Insurance Group plc, according to an official notice. The CMA has indicated that the merger notice submitted by both companies meets the requirements of the Enterprise Act 2002, thus allowing the investigation to proceed.

The launch of the merger inquiry was announced on 14th May 2025, with the deadline for external comments set for 29th May 2025. The CMA is expected to make a phase 1 decision by 10th July 2025. However, the CMA has clarified that these dates are subject to change. Any alterations will be updated as soon as possible on the CMA’s website.

The authority has stated that it cannot guarantee the decision will be announced on or before the current deadline, as the timeline for a given case may change during the merger assessment process for various reasons.

Jefferies, a global investment banking firm, has noted that the timing of the inquiry is relatively close to the expected completion date of the merger. This creates the potential risk that the inquiry could delay the completion of the deal, regardless of the CMA’s final decision.

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