Latest news with #CompetitionandMarketsAuthority
South Wales Guardian
32 minutes ago
- Business
- South Wales Guardian
Aviva hands out £500 of free shares to staff after Direct Line takeover
The group said all 23,000 staff at Aviva and the 8,500-strong workforce at newly acquired Direct Line will receive the shares bonus in September to celebrate and recognise the milestone deal. They will need to hold on to the free shares for three years, Aviva said. Aviva officially completed the acquisition on Wednesday after receiving confirmation of the all-clear from the Competition and Markets Authority (CMA) on Tuesday. The takeover, which was first announced on December 23 last year, creates a significant force in the motor insurance sector, estimated to cover more than a fifth of the total UK market. Direct Line owns the Churchill and Green Flag brands, as well as its namesake brand as part of a portfolio offering car, pet, home and other insurance policies. Amanda Blanc, group chief executive at Aviva, said: 'The completion of the acquisition of Direct Line brings together some of the country's best-known and admired insurance brands and brilliant people to better serve the needs of now 20 million UK customers.' She said the deal 'puts us in a very good position to deliver strong returns for shareholders' and supports its strategy. 'That is why this deal made such sense for us and we are excited at the further opportunities this creates for Aviva's growth,' she added. But the takeover has also sparked fears among workers at the two firms after Aviva revealed at the end of last year that around 2,300 jobs would be at risk amid cost-cutting efforts in the wake of the deal. Aviva is looking to save £125 million in annual costs within three years of the deal closing. Aviva paid 129.7 pence in cash and 0.2867 of its own shares for each Direct Line share as part of the deal. It also paid up to 5p in dividend payments per share to Direct Line shareholders. Aviva shareholders own around 87.5% of the new company while Direct Line shareholders own about 12.5%. Before the Aviva deal was agreed, Direct Line had fended off a takeover attempt by Belgian company Ageas earlier in 2024.
Western Telegraph
an hour ago
- Business
- Western Telegraph
Aviva hands out £500 of free shares to staff after Direct Line takeover
The group said staff at Aviva and workers at newly acquired Direct Line will receive the shares bonus in September to celebrate and recognise the milestone deal. They will need to hold on to the free shares for three years, Aviva said. Aviva officially completed the acquisition on Wednesday after receiving confirmation of the all-clear from the Competition and Markets Authority (CMA) on Tuesday. The takeover, which was first announced on December 23 last year, creates a significant force in the motor insurance sector, estimated to cover more than a fifth of the total UK market. Direct Line owns the Churchill and Green Flag brands, as well as its namesake brand as part of a portfolio offering car, pet, home and other insurance policies. Amanda Blanc, group chief executive at Aviva, said: 'The completion of the acquisition of Direct Line brings together some of the country's best-known and admired insurance brands and brilliant people to better serve the needs of now 20 million UK customers.' She said the deal 'puts us in a very good position to deliver strong returns for shareholders' and supports its strategy. 'That is why this deal made such sense for us and we are excited at the further opportunities this creates for Aviva's growth,' she added. But the takeover has also sparked fears among workers at the two firms after Aviva revealed at the end of last year that around 2,300 jobs would be at risk amid cost-cutting efforts in the wake of the deal. Aviva is looking to save £125 million in annual costs within three years of the deal closing. Aviva paid 129.7 pence in cash and 0.2867 of its own shares for each Direct Line share as part of the deal. It also paid up to 5p in dividend payments per share to Direct Line shareholders. Aviva shareholders own around 87.5% of the new company while Direct Line shareholders own about 12.5%. Before the Aviva deal was agreed, Direct Line had fended off a takeover attempt by Belgian company Ageas earlier in 2024.
RTÉ News
a day ago
- Business
- RTÉ News
UK competition watchdog clears £3.7 billion Aviva-Direct Line deal
The UK competition watchdog has today cleared Aviva's £3.7 billion takeover of smaller rival Direct Line, paving the way for the creation of Britain's largest home and motor insurer. The Competition and Markets Authority, which launched an initial investigation into the deal in May, said it would not refer the deal to an in-depth probe. Aviva and Direct Line inked an agreement in December to create one of London's largest listed insurers, rivalling Legal & General and the Asia-focused Prudential in terms of market value. The combined company, representing Aviva CEO Amanda Blanc's most ambitious corporate transaction to date, would have a more than 20% share in both home and motor insurance in the UK, analysts said at the time the deal was announced.
Glasgow Times
2 days ago
- Automotive
- Glasgow Times
Fuel margins remain high despite lower prices at the pump, watchdog finds
The Competition and Markets Authority (CMA) said retailers' margins – the difference between what they pay for fuel and what they sell it at – remained high compared to historic levels. Fuel prices across the UK fell for both petrol and diesel over the three months to the end of May by 7.6 pence per litre (ppl) and 8.4 ppl respectively. But the CMA found that fuel margins were similar to the high levels seen during its road fuel market study – a review of the market to understand the factors influencing fuel prices undertaken in 2023 – which suggested overall competition in the UK's road fuel retail market remained 'weak'. Supermarket fuel margins fell from 8.9% in December 2024 to 7.9% in February 2025, before rising to 8.3% in March 2025, the regulator found. Non-supermarket fuel margins fell from 9.9% in December 2024 to 8.9% in January 2025, before rising to 10.4% in March 2025. The CMA also looked at the retail spread – the average price that drivers pay at the pump compared to the benchmarked price that retailers buy fuel at – across the UK from March 2025 to May 2025. It found that petrol retail spreads averaged 15.4 ppl, which was 1.5 ppl higher than the previous four-month period – and still more than double the average of 6.5 ppl over 2015 to 2019. Diesel retail spreads averaged 18.8 ppl, which was 4.6 ppl higher than the previous four-month period and more than double the average of 8.6 ppl in 2015 to 2019. Dan Turnbull, senior director of markets at the CMA, said: 'While there is uncertainty over how global events will impact the price of oil, our report shows fuel margins remain high compared to historic levels despite lower prices at the pump in recent months. 'The Government committed to launching a 'fuel finder' scheme following our recommendation to help drivers compare real-time prices and boost competition. 'Once launched, it will make it easier than ever to shop around and find the best deals.' RAC head of policy Simon Williams said: 'Given fuel is a major expense for households, and with eight in 10 drivers dependent on their cars, it's disappointing to see they've paid over the odds yet again. 'We have to hope the launch of the Government-backed Fuel Finder scheme, due at the end of the year, will stimulate competition and finally lead to fairer pump prices.' AA president Edmund King said: 'Once again, the CMA has exposed boosted margins and profits from petrol and diesel. Road fuel is a critical part of a consumer and family budgets. Increased fuel costs have a major influence on inflation. 'While the hope is that pump price reporting, which becomes mandatory at the start of the next year, might bring about more competition, what is happening now is not only bad news for drivers and businesses but also siphoning off potential consumer spending for the likes of tourism and others.' Mr King added: 'The clear and present danger now is the cost of petrol and diesel along holiday routes. Some of the prices are outrageous and we can only hope that drivers take maximum advantage of the price transparency provided by the CMA's voluntary reporting scheme to locate the competitive forecourts.'
Leader Live
2 days ago
- Automotive
- Leader Live
Fuel margins remain high despite lower prices at the pump, watchdog finds
The Competition and Markets Authority (CMA) said retailers' margins – the difference between what they pay for fuel and what they sell it at – remained high compared to historic levels. Fuel prices across the UK fell for both petrol and diesel over the three months to the end of May by 7.6 pence per litre (ppl) and 8.4 ppl respectively. But the CMA found that fuel margins were similar to the high levels seen during its road fuel market study – a review of the market to understand the factors influencing fuel prices undertaken in 2023 – which suggested overall competition in the UK's road fuel retail market remained 'weak'. Supermarket fuel margins fell from 8.9% in December 2024 to 7.9% in February 2025, before rising to 8.3% in March 2025, the regulator found. Non-supermarket fuel margins fell from 9.9% in December 2024 to 8.9% in January 2025, before rising to 10.4% in March 2025. The CMA also looked at the retail spread – the average price that drivers pay at the pump compared to the benchmarked price that retailers buy fuel at – across the UK from March 2025 to May 2025. It found that petrol retail spreads averaged 15.4 ppl, which was 1.5 ppl higher than the previous four-month period – and still more than double the average of 6.5 ppl over 2015 to 2019. Diesel retail spreads averaged 18.8 ppl, which was 4.6 ppl higher than the previous four-month period and more than double the average of 8.6 ppl in 2015 to 2019. Dan Turnbull, senior director of markets at the CMA, said: 'While there is uncertainty over how global events will impact the price of oil, our report shows fuel margins remain high compared to historic levels despite lower prices at the pump in recent months. 'The Government committed to launching a 'fuel finder' scheme following our recommendation to help drivers compare real-time prices and boost competition. 'Once launched, it will make it easier than ever to shop around and find the best deals.' RAC head of policy Simon Williams said: 'Given fuel is a major expense for households, and with eight in 10 drivers dependent on their cars, it's disappointing to see they've paid over the odds yet again. 'We have to hope the launch of the Government-backed Fuel Finder scheme, due at the end of the year, will stimulate competition and finally lead to fairer pump prices.' AA president Edmund King said: 'Once again, the CMA has exposed boosted margins and profits from petrol and diesel. Road fuel is a critical part of a consumer and family budgets. Increased fuel costs have a major influence on inflation. 'While the hope is that pump price reporting, which becomes mandatory at the start of the next year, might bring about more competition, what is happening now is not only bad news for drivers and businesses but also siphoning off potential consumer spending for the likes of tourism and others.' Mr King added: 'The clear and present danger now is the cost of petrol and diesel along holiday routes. Some of the prices are outrageous and we can only hope that drivers take maximum advantage of the price transparency provided by the CMA's voluntary reporting scheme to locate the competitive forecourts.'
