Insurance takeover is likely to cast a pall of uncertainty over Christmas for many staff of combined group

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Aviva has agreed to buy rival insurer Direct Line for £3.7bn, with up to 2,300 job cuts planned as the companies aim for £125m in cost savings.

FTSE 100 member Aviva, the UK’s largest insurer, said on Monday it will offer the equivalent of £2.75 for each Direct Line share in cash and shares.