Aviva’s acquisition of the RAC, has been cleared by the European Commission.

The commission said the transaction “would not significantly impede effective competition”.

It said it examined the overlaps in non-life insurance and the roadside assistance markets but found that the markets will remain competitive and in the latter case are expanding with new entrants.

The commission also examined the impact of Aviva's present business model of offering roadside assistance bundled with motor insurance. It said it found the combined group will still face strong competition.