The Competition and Markets Authority (CMA) is actively assessing the proposed transaction between Aviva and AIG Life to determine its classification as a merger under the provisions of the Enterprise Act 2002.
The CMA seeks to determine if there would be a significant decrease in competition in any market or marketplaces in the UK where products or services are offered for sale if the merger is authorised.
The inquiry began on February 8, 2024, and comments on the proposed merger are welcome from interested parties between February 8 and February 22, 2024. The CMA has established April 8, 2024, as the deadline for the phase 1 decision.
The CMA says: “The CMA is considering whether it is or may be the case that this transaction if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”
Aviva finalised the acquisition of AIG Life for £460 million last September, aiming to expand its presence in the UK protection market. With this transaction, Aviva is expected to gain access to 1.4 million group protection members and 1.3 million individual members.
Aviva saw the acquisition as a strategic move to expand its ‘capital-light’ businesses and diversify its distribution channels in the UK protection market, aligning with its recent robust organic growth in the sector.
