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(Alliance News) - The UK Competition Markets Authority on Thursday said it was considering whether the recently announced acquisition of AIG Life Ltd by Aviva PLC could reduce competition in the UK services sector.
In September, London-based insurer Aviva announced its acquisition of AIG Life from Corebridge Financial, a subsidiary of American International Group Inc, for GBP460 million.
Aviva said that acquiring AIG's life-insurance and retirement-services division would add 1.3 million individual protection customers and 1.4 million group protection members to the company's existing portfolio.
On Thursday, the CMA said that it was considering whether the deal could result in a merger situation under the Enterprise Act of 2002, which would lead to a "substantial lessening of competition within any market or markets in the United Kingdom for goods or services."
Aviva has a current market capitalisation of GBP11.61 billion, while the wider AIG group is valued at USD49.01 billion.
The watchdog informed the two companies of its intention to launch a merger inquiry on Thursday, which has a deadline of April 8 for a phase one decision.
The CMA is currently inviting comments from interested parties to assist with its assessment, which should be submitted before the deadline of February 22.
Shares in Aviva were down 0.4% at 423.40 pence each in London on Thursday.
By Hugh Cameron, Alliance News reporter
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