Investing.com -- The Competition and Markets Authority (CMA) in the UK has launched an investigation into Aviva (LON:AV)’s planned purchase of its smaller rival, Direct Line (LON:DLGD).
The deal, which is valued at 3.7 billion pounds ($4.92 billion), was announced on Wednesday.
The CMA has set a deadline of July 10 to make an initial phase 1 decision on the deal.
This investigation will assess whether the proposed acquisition could lead to a lessening of competition within the market.
Aviva, a multinational insurance company headquartered in London, is planning to acquire Direct Line, a general insurance company also based in the UK.
The proposed deal is one of the largest in the insurance sector this year.
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