Direct Line accepts £3.6bn takeover after rival insurer Aviva raises bid

The Direct Line board says the offer price means it is minded to recommend to shareholders that they accept the bid from Aviva. Photograph: Chris Dorney/Alamy

The insurance company Direct Line has accepted an improved offer from its bigger UK rival Aviva, in a deal valuing the business at £3.6bn.

Aviva, the UK’s largest insurer, has succeeded in reaching a preliminary agreement to take over Direct Line after submitting a third cash and shares bid valuing London-listed Direct Line at 275p a share.