Britain’s competition watchdog cleared Aviva’s 3.7-billion-pound ($5.08 billion) takeover of smaller rival Direct Line on Tuesday, paving the way for the creation of Britain’s largest home and motor insurer.
The Competition and Markets Authority, which launched an initial investigation into the deal in May, said it would not refer the deal to an in-depth probe.
Aviva and Direct Line inked an agreement in December to create one of London’s largest listed insurers, rivalling Legal & General and the Asia-focused Prudential in terms of market value.
The combined company, representing Aviva CEO Amanda Blanc’s most ambitious corporate transaction to date, would have a more than 20% share in both home and motor insurance in the UK, analysts said at the time the deal was announced.
Aviva said last month that the deal was expected to become effective on July 1.
($1 = 0.7277 pounds)
(Reporting by Yadarisa Shabong in Bengaluru)
