Aon's proposed acquisition of WTW set for EU probe

Aon's proposed acquisition of Willis Towers Watson (WTW) is set to undergo an in-depth probe by European Union (EU) regulators due to its complexity, sources have told Reuters.

Aon had agreed to purchase WTW in a $30bn (£22.9bn) all-share deal in March 2020.

The transaction faces a review once the European Commission’s preliminary review of the deal concludes on 21 December.

According to Reuters' sources, the process would last five months and would look to address any potential competition concerns that may arise out of such a large merger.

Aon and WTW declined to comment on these reports, but it is possible that an EU investigation could delay the merger, which was expected to be completed within the first half of 2021.

The acquisition would merge two of the world’s largest insurance brokers and form the UK’s largest pension consulting firm.

The firms had initially been in discussions in early 2019 about a possible acquisition, but Aon pulled out of the talks on 6 March 2019 after news of the discussions became public.

Under the purchase agreement, existing Aon shareholders would own approximately 63 per cent and existing WTW shareholders would own around 37 per cent of the combined firm.

WTW shareholders would receive 1.08 Aon shares for each WTW share, which represents a 16.2 per cent premium to WTW's closing share price on 6 March 2020.

    Share Story:

Recent Stories


Closing the gender pension gap
Laura Blows discusses the gender pension gap with Scottish Widows head of workplace strategic relationships, Jill Henderson, in our latest Pensions Age video interview

Endgames and LDI: Lessons to be learnt
At the PLSA Annual Conference, Laura Blows spoke to State Street Global Advisors EMEA head of LDI, Jeremy Rideau, about DB endgames and LDI in the wake of the gilts crisis of two years ago

Keeping on track
In the latest Pensions Age podcast, Sophie Smith talks to Pensions Dashboards Programme (PDP) principal, Chris Curry, about the latest pensions dashboards developments, and the work still needed to stay on track
Building investments in a DC world
In the latest Pensions Age podcast, Sophie Smith talks to USS Investment Management’s head of investment product management, Naomi Clark, about the USS’ DC investments and its journey into private markets

Advertisement