CMA Probes Aviva-Direct Line Merger, Jobs at Risk

The UK Competition and Markets Authority (CMA) has initiated an investigation into Aviva's proposed £3.7 billion ($4.9 billion) acquisition of Direct Line, a deal that would result in the UK's largest motor insurer. The CMA's Phase 1 inquiry, with a decision deadline of July 10, will assess whether the merger could significantly reduce competition in the insurance sector. Regulatory scrutiny has intensified due to the scale of the deal and Aviva's announcement that about 2,300 jobs may be at risk from post-merger cost-cutting. The acquisition is one of the largest in the insurance sector this year and aligns with Aviva's strategy to increase its market share and expand digital offerings. Recent leadership changes and turnaround efforts at Direct Line are also influencing the context of the deal. The CMA’s review is a key step in evaluating the broader consequences for industry competition and consumer choice.