Aon to buy Willis Towers Watson for nearly $30bn in insurance mega-deal
Aon said today it had agreed to acquire Willis Towers Watson for nearly $30bn (£22.9bn) in an all-stock deal that will create one of the world’s largest insurance brokers.
The deal between the two would create a company with a combined value of approximately $80bn.
Aon confirmed last year it was in early stage talks with Willis Towers before quickly scrapping the plans, without giving a reason.
Analysts said at the time that an Aon-Willis deal might have trouble clearing antitrust hurdles.
The deal terms say Aon will be obliged to pay $1bn to Willis if the deal falls through.
Upon completion, existing Aon shareholders will own approximately 63 per cent of the combined company and existing Willis Towers Watson shareholders will own approximately 37 per cent.
The company will be called Aon and will retain its operating headquarters in London.
“The combination of Willis Towers Watson and Aon is a natural next step in our journey to better serve our clients in the areas of people, risk and capital,” Willis Towers Watson chief executive John Haley said.
“This combination will create a more innovative platform capable of delivering better outcomes for all stakeholders, including clients, colleagues, partners and investors,” Aon chief executive Greg Case said.
Aon’s financial adviser on the deal is Credit Suisse and its legal advisers are Latham & Watkins, Freshfields Bruckhaus Deringer and Arthur Cox.
Willis Towers Watson’s financial adviser is Goldman Sachs and its legal advisers are Weil, Gotshal & Manges, Skadden, Arps, Slate, Meagher & Flom and Matheson.