The Competition and Markets Authority (CMA) officially confirmed that it would not escalate its review, meaning the acquisition won&rsquo;t face a Phase 2 investigation&mdash;clearing the final hurdle for the deal. This follows earlier approvals from the Financial Conduct Authority, Prudential Regulation Authority, and others.
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Deal Highlights &amp; Strategic Value
<ul type="disc">
<li class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-pagination: widow-orphan; mso-list: l1 level1 lfo1; tab-stops: list 36.0pt; text-autospace: ideograph-numeric ideograph-other;">Transaction Size: Aviva is acquiring Direct Line for &pound;3.7 billion ($5.08 billion), with an agreed value of 275p per share.</li>
<li class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-pagination: widow-orphan; mso-list: l1 level1 lfo1; tab-stops: list 36.0pt; text-autospace: ideograph-numeric ideograph-other;">Market Impact: The merger will create the UK&rsquo;s largest home and motor insurer, controlling over 20% of the market in both segments.</li>
<li class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-pagination: widow-orphan; mso-list: l1 level1 lfo1; tab-stops: list 36.0pt; text-autospace: ideograph-numeric ideograph-other;">Cost Synergies: Aviva projects annual pre-tax cost savings of &pound;125 million within three years, despite upfront integration costs of around &pound;250 million.</li>
</ul>
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Leadership Winds Down
With the deal&rsquo;s green light, Direct Line&rsquo;s CEO Adam Winslow and CFO Jane Poole are set to step down following the takeover. Additionally, other board members are expected to depart as Aviva restructures the executive team.
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Workforce Plans &amp; Brand Strategy
Aviva plans a 5&ndash;7% reduction in headcount&mdash;around 1,600 to 2,300 jobs&mdash;over a three-year period, though natural attrition may reduce the final total.
Despite these changes, Aviva intends to retain major Direct Line brands&mdash;including Direct Line, Churchill, and Green Flag&mdash;to preserve customer loyalty and market presence.
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What Happens Next
<ol start="1" type="1">
<li class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-pagination: widow-orphan; mso-list: l0 level1 lfo2; tab-stops: list 36.0pt; text-autospace: ideograph-numeric ideograph-other;">A High Court sanction hearing marks the final formal legal step, expected on July 1, 2025, with the takeover effective immediately afterward.</li>
<li class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-pagination: widow-orphan; mso-list: l0 level1 lfo2; tab-stops: list 36.0pt; text-autospace: ideograph-numeric ideograph-other;">Delisting of Direct Line shares is projected to occur shortly after&mdash;likely by July 3&ndash;4.</li>
<li class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; mso-pagination: widow-orphan; mso-list: l0 level1 lfo2; tab-stops: list 36.0pt; text-autospace: ideograph-numeric ideograph-other;">Aviva shareholders will hold nearly 87.5% of the combined company, with Direct Line investors owning the remainder.</li>
</ol>
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Final Thoughts
This takeover marks a transformative consolidation in UK insurance&mdash;creating a powerhouse with scale, operational efficiency, and brand diversity. The CMA&rsquo;s swift clearance signals regulator confidence that competition won&rsquo;t be harmed, while the cost synergies and brand strategy aim to enhance value for both shareholders and customers.

The Competition and Markets Authority (CMA) officially confirmed that it would not escalate its review, meaning the acquisition won’t face a Phase 2 ..

Regulatory Green Light at Last