Aviva-Direct Line Merger Cleared, Job Cuts Expected

The UK Competition and Markets Authority has approved Aviva's £3.7 billion takeover of Direct Line, paving the way for Britain's largest home and motor insurer. The combined entity will hold over a 20% market share in both sectors, rivaling major insurers like Legal & General and Prudential by market value. The deal is expected to become effective on July 1. Aviva plans to achieve £125 million in annual cost savings within three years, though up to 2,300 jobs may be at risk due to role overlaps. Direct Line shareholders will receive a mix of Aviva shares and cash as part of the acquisition. This transaction marks Aviva CEO Amanda Blanc's most ambitious corporate move to date.