Aviva set to complete 3.7 billion pound Direct Line takeover after court sanctions deal

By Rebecca Delaney

July 1 - (The Insurer) - Aviva's takeover of Direct Line is set to complete later on Tuesday after the scheme of arrangement that will implement the acquisition was sanctioned in court.

The scheme will become effective once the court order is delivered to the Registrar of Companies, which is expected to happen later on Tuesday.

Applications have now been made to suspend trading in Direct Line shares, which will now be de-listed from the London Stock Exchange.

Earlier on Tuesday, the UK's competition and antitrust watchdog announced it had given the green light to London-listed Aviva's 3.7 billion pound ($5.09 billion) takeover of rival Direct Line Insurance Group.

The Competition and Markets Authority (CMA) launched an investigation into Aviva’s planned takeover of Direct Line on May 14.

The CMA began a phase one investigation into the impact of the deal, which would see Aviva become Britain's largest home and motor insurer, on competition in the UK personal lines insurance sector.

Interested parties were invited to comment on the proposed transaction to assess whether the tie-up could result in a “substantial lessening of competition”.

Aviva and Direct Line said in a joint stock exchange filing on June 17 that the Financial Conduct Authority and the Prudential Regulation Authority had each given written notice approving the acquisition.

Direct Line shareholders voted in favour of its proposed takeover by Aviva at a special meeting in March.

Direct Line confirmed in a Stock Exchange announcement last week that CEO Adam Winslow and chief financial officer Jane Poole will both step down from their roles following completion of the acquisition.