Aviva taking over Direct Line. Credit: chrisdorney, Shutterstock
Aviva is expected to complete its £3.7 billion (€4.35 billion) takeover of Direct Line Insurance on Tuesday, July 1, 2025, after receiving key approvals and expressing confidence in final clearance from the UK’s Competition and Markets Authority (CMA).
The CMA is due to publish its phase one findings on July 10, but both Aviva and Direct Line said they are optimistic. “Following constructive engagement with the CMA, Aviva remains confident of securing unconditional clearance by the phase 1 statutory deadline,” the companies said in a joint statement, as reported by Proactive Investors.
The deal, first announced in December 2024, will create a major player in the UK motor insurance market, with over 20 per cent market share. It includes Direct Line’s brands Churchill, Green Flag, and its core car, home, and pet insurance offerings.
However, the merger has sparked concern among staff. Aviva previously announced that around 2,300 jobs could be at risk due to post-merger cost-cutting, according to The Independent.
Direct Line, which had earlier rejected a bid from Belgian insurer Ageas, is currently undergoing a £100 million cost-cutting programme under new CEO Adam Winslow, who took over in March.
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