Aviva (LSE:AV.)has received the green light from the UK’s competition authority to proceed with its purchase of fellow insurer Direct Line (LSE:DLGD), marking the final regulatory clearance needed to complete the £3.7 billion ($5.08 billion) transaction.
On Tuesday, the Competition and Markets Authority (CMA) announced it would not escalate the review to a more detailed phase-two investigation, following an initial assessment of the deal’s potential impact on competition within the UK insurance sector.
The acquisition officially closed on Tuesday, with shares of Direct Line expected to be removed from trading and canceled by Thursday.
Aviva, which also manages assets alongside its insurance business, had launched a formal bid for Direct Line toward the end of last year. This approval clears the path for the firms to move forward with their integration plans.
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