According to British takeover rules, Aviva has until 25 December 2024 to make a firm offer or walk away
Aviva is keen to wrap up its takeover of Direct Line Group (DLG) quickly, according to a report from Reuters.
The two firms have reached a preliminary agreement on the financial terms for a potential acquisition, with the DLG board accepting a £3.6bn bid from Aviva.
The board said it was minded to recommend to shareholders that they accept a formal offer.
According to British takeover rules, Aviva has until 25 December 2024 to make a firm offer or walk away.
And a Reuters source said “the insurers are keen to wrap up the deal quickly, given the final deadline falls on Christmas Day”.
The deal
This comes after DLG rejected a £3.3bn bid from its rival insurer in November 2024, saying the offer was “highly opportunistic and substantially undervalued the company”.
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Aviva’s improved bid equals a valuation of 275 pence per share, up from the 250 pence figure last month.
The insurer said it ”believes in the strong strategic and financial logic for a combination of Direct Line into the Aviva group”.
The DLG board also felt the combination of the two firms ”would provide the opportunity to deliver significant synergies, creating substantial additional value for both sets of shareholders”.
His career began in 2019, when he joined a local north London newspaper after graduating from the University of Sheffield with a first-class honours degree in journalism.
He took up the position of deputy news editor at Insurance Times in March 2023, before being promoted to his current role in May 2024.View full Profile
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