Aviva-AIG deal faces CMA scrutiny

UK watchdog launches merger inquiry

Aviva-AIG deal faces CMA scrutiny

Life & Health

By Terry Gangcuangco

The Competition and Markets Authority (CMA) has launched its merger inquiry into Aviva’s proposed purchase of AIG Life UK.

The watchdog said: “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.”

Comments relating to the £460 million deal, which was announced last September, will be accepted until February 22. The CMA will then have until April 8 to come up with its decision whether to refer the merger for further investigation.

When the acquisition was unveiled last year, Aviva noted: “AIG Life UK complements Aviva’s approach with a focus on innovative solutions and strong partnership distribution.

“The combined protection business will benefit from AIG Life UK’s successful SME and high-net-worth propositions and will reach more customers through AIG Life UK’s relationships with regional and corporate IFAs (independent financial advisers), as well as other key partners. The combined businesses will create a more efficient platform from which to serve existing and new customers.”

Aside from the Aviva-AIG transaction, the CMA is also currently looking into Markerstudy’s swoop for The Ardonagh Group’s personal lines broking business.   

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