Aviva Plc reached a preliminary agreement to buy Direct Line Insurance Group Plc for £3.6 billion ($4.6 billion) in a deal that would create the UK’s largest motor insurer.
London-listed Aviva sweetened its bid in the latest negotiations with Direct Line to 275 pence per share, according to a statement on Friday. The cash-and-stock proposal would see Aviva issue new shares and make dividend payments to Direct Line shareholders.
Direct Line said its board would be inclined to recommend the proposal to its shareholders should a firm o