Aviva and Direct Line Agree on £3.6bn Takeover Deal

The proposed acquisition would create a major player in the UK motor insurance market, covering over 20% of the sector.

Aviva has reached a preliminary agreement to acquire Direct Line in a cash-and-shares deal worth £3.61 billion, valuing Direct Line at 275p per share.
The offer includes 129.7p per share in cash, 0.2867 Aviva shares per Direct Line share, and up to 5p in dividends for Direct Line shareholders.
Direct Line's board, after rejecting earlier offers, has indicated it is now minded to recommend the deal to shareholders, citing its attractive value and potential synergies.
The merger would make the combined entity a dominant player in the UK motor insurance market, estimated to control over a fifth of the sector.
Aviva has until 5pm on Christmas Day to formalize the offer, which analysts suggest could lead to significant cost savings but also potential job losses.