The UK’s Competition and Markets Authority (CMA) has launched an investigation into Aviva’s £460m acquisition of AIG’s life insurance business, amid concerns the deal could result in a “substantial lessening of competition”.

The CMA has invited comments from interested parties until 22 February and is expected to complete the initial phase of its probe by 8 April.

Aviva agreed to buy the UK life insurance business of AIG last September and the transaction was expected to add 1.3 million individual protection customers and 1.4 million group protection members to Aviva’s business.

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