"The Competition and Markets Authority has decided, on the information currently available to it, not to refer the above merger to a phase 2 investigation under the provisions of the Enterprise Act 2002."
In September 2023, Aviva announced the acquisition of AIG Life UK from Corebridge Financial, Inc. for consideration of £460mn. This transaction is set to build upon the insurer’s strong organic growth, offering high-quality customer propositions, and continual improvements to the experience of customers and intermediaries alike.
At the time, AIG Life UK provided a full suite of individual and group protection products with 1.3mn individual protection customers and 1.4mn group protection members.
The acquisition has been subject to customary closing conditions, including regulatory approvals since then, with an expected close in the half of this year.
READ MORE: AIG Life UK retires from protection market
On the 8th February, the Competition & Markets Authority (CMA) said the merger notice in relation to the anticipated acquisition by Aviva of AIG Life Limited meets the requirements of section 96(2) of the Act. Consequently, an investigation was launched to assess whether this merger will result in a “substantial lessening of competition within any market or markets in the UK for good or services.”
“It’s typical for transactions to require regulatory approval and this deal is no different. We continue to expect the transaction to be complete in the first half of 2024 subject to regulatory approvals, and we will provide an update in due course,” said an Aviva spokesperson to various media outlets.
READ MORE: Aviva unfazed by CMA investigation into AIG Life UK merger
Despite retaining the right to announce further investigation before the 8th April 2024, the CMA has today said that it’s decided not to open an in-depth ‘phase 2’ investigation into this acquisition.
In a statement, the regulator said its decided, “on the information currently available to it, not to refer the above merger to a phase 2 investigation under the provisions of the Enterprise Act 2002.”
Both Aviva and AIG Life have been approached for comment.
