Aviva says the acquisition is progressing in line with expectations
Aviva has said that it expects its £3.7bn acquisition of Direct Line Group (DLG) to complete in mid-2025.
The two firms announced that they had agreed on the terms of a cash and share offer in December 2024.
Under the terms of the deal, for each DLG share held, shareholders will receive 0.2867 new Aviva shares and 129.7 pence in cash.
When Aviva published its financial results yesterday (27 February 2025), its chief executive Amanda Blanc said the deal was “on track and is a clear opportunity to accelerate our capital-light growth, deliver brilliant service to millions more customers and support the wider development of the UK economy”.
The insurer also said that the acquisition was progressing in line with expectations, “with completion anticipated in mid-2025”.
However, Aviva stressed this was subject to the upcoming shareholder vote and regulatory approvals.
Vote
It is intended that the acquisition will be implemented by way of a court-sanctioned scheme of arrangement under part 26 of the Companies Act.
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Read: Aviva’s Blanc says it is ‘key’ DLG deal ‘delivers for us’
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A scheme can be used to action the reorganisation of a company or group structure and requires approval by at least 75% to be effective.
On 10 March 2025, shareholders will vote on the scheme and a special resolution that will be proposed at a general meeting on the same day.
The scheme is expected to become effective in mid-2025 should shareholders vote in favour of it.
In a letter to holders of DLG shares, DLG chair Danuta Gray said: “I am writing to you on behalf of the Direct Line directors to explain the background to and detailed terms of the acquisition, to encourage you to vote at the meetings to be held on 10 March 2025 to consider the acquisition and to set out the reasons why the Direct Line directors consider the terms of the acquisition to be fair and reasonable.
“The Direct Line directors are unanimously recommending that you vote in favour of the scheme at the court meeting and in favour of the special resolution to be proposed at the general meeting.”
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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