Aviva plc has received regulatory approval from the Financial Conduct Authority and the Prudential Regulation Authority for its £3.7bn acquisition of Direct Line Insurance Group, clearing the path for a potential closing in early July.
The Solicitors Regulation Authority also approved Aviva and its subsidiaries acquiring a material interest in Direct Line’s legal services unit, DLG Legal Services.
While clearance from the Competition and Markets Authority (CMA) was a formal condition of the deal, Aviva said it has waived that condition.
The insurer stated that, following discussions with the CMA, it remains confident in receiving unconditional clearance by the phase 1 statutory deadline.
Aviva and Direct Line confirmed that all required regulatory and antitrust conditions have either been satisfied or validly waived.
The CMA opened a formal inquiry into the merger on May 14 and invited third-party comments through May 29. The authority’s deadline for a phase 1 decision is July 10.
The acquisition remains subject to additional conditions, including a court sanction hearing scheduled for July 1 and submission of the final court order to the registrar of companies. If approved, the scheme is expected to become effective the same day.
Direct Line share trading will be suspended on the morning of July 2. The shares will be removed from the London Stock Exchange and the official list on the morning of July 3. On the same day, new Aviva shares will be issued to Direct Line shareholders.
