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Aon (AON) Takes Measures for Pending Willis Towers Buyout

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Aon plc (AON - Free Report) has inched closer to acquire Willis Towers Watson Public Limited Company . To this end, both companies agreed to sell Willis Re and a set of Willis Towers Watson corporate risk and broking and health and benefits services to Arthur J. Gallagher & Co. (AJG - Free Report) . The sale with fetch $3.57 billion.

These steps were taken to satisfy European Commission’s questions.
Aon remains committed to $800 million of cost synergies.

Rationale Behind the Deal

The combined company is expected to deliver revenue growth and margin expansion via provision of better solutions. The consolidation will also lead to better cash flow and earnings growth. Aon expects accretion to adjusted EPS. Subject to certain conditions, the Aon and Willis Towers Watson deal is expected to close in the third quarter of the current year.

This all-stock merger of Aon and Willis Towers Watson will overtake Marsh & McLennan Companies Inc.(MMC - Free Report) in terms of market capital. Aon and Willis Towers Watson have complementary businesses. Their advanced, technology-powered global platform is anticipated to provide data-driven insights for creating client value.

Underpenetrated areas like cyber, climate risk and delegated investments with client demands will be met with the expertise of both companies. The combined entity will cater to clients across risk, retirement and health businesses.

Insurance brokers have been looking for ways to fight the evolving challenges and boost their business portfolios. In this context, these strategic initiatives will be of great help. 

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Marsh & McLennan Companies, Inc. (MMC) - free report >>

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