Investing.com -- The Competition and Markets Authority (CMA), Britain’s antitrust watchdog, has initiated an investigation into the proposed £3.7 billion ($4.9 billion) acquisition of Direct Line Insurance Group PLC (LON:DLGD) by Aviva PLC (LON:AV), a company listed on the London Stock Exchange (LON:LSEG).
The deal, if approved, would make Aviva the largest home and motor insurer in the United Kingdom (TADAWUL:4280).
The CMA said on Wednesday that it has begun a preliminary, or phase one, investigation into the deal.
As part of the investigation, the CMA is seeking feedback from parties interested in the deal.
The primary concern is whether the merger could lead to a significant reduction in competition. The deadline for submitting comments is May 29, and the findings are expected to be published in July.
Aviva reached an agreement in December to acquire Direct Line for £3.7 billion. Prior to this agreement, Direct Line had rejected two lower offers from Belgian insurer Ageas (LON:0Q99) earlier in 2024.