CMA has up to 40 working days to evaluate agreement’s possible impact on competition in insurance sector

• Business live – latest updates

The competition watchdog has launched an investigation into Aviva’s multibillion-pound takeover of the rival insurer Direct Line.

The £3.7bn deal, which was agreed last year, will combine the insurance operations of both companies, in a move that is expected to create one of the biggest car insurers in the country.