Aon and Willis Towers Watson have reached an agreement to sell Willis Re and a set of Willis Towers Watson’s corporate risk and broking, as well as health and benefits services, to Arthur J. Gallagher & Co. for $US3.57 billion.
The agreement resolves questions raised by the European Commission and is intended to address certain questions raised by regulators in certain other jurisdictions, said a press release. The merger, first announced in March 2020, will see Aon and Willis Towers Watson combine under the Aon name.
“This agreement demonstrates strong momentum on the path to close our proposed combination with Willis Towers Watson,” said Greg Case, Aon’s chief executive officer, in the release. “We’ve used this time to align our future leadership team around a one-firm culture that will create new opportunities for colleagues, accelerate innovation on behalf of clients and deliver shareholders the long-term value creation they have come to expect from our team.”
The impending merger has raised concerns among regulators and industry advocates across the globe. In May 2020, the Pension Investment Association of Canada expressed concern in a letter to the national competition bureau that the competitive market for actuarial services will be dramatically reduced as a result since both consultancies are currently major players in the area of actuarial consulting professional services across the country, including pension fund asset management, design, funding and administrative services.
Although the respective shareholders of both companies approved the merger in August 2020, the combination remains subject to customary regulatory and other closing conditions and is now expected to close later this year.