Global financial firm Aon is set to acquire rival Willis Towers Watson for $30 billion in an all-stock deal, media reports said. The acquisition will create one of the largest insurance brokers in the world. It is reported to have an estimated value of $80 billion.
The new company will be called Aon and headquartered in London. However, the transaction is subject to shareholder approval of both companies.
Analysts anticipate that the deal might face challenges from antitrust regulators. Under the terms of the agreement, Aon will have to pay $1 billion to Willis if the deal breaks. The deal is expected to be completed in the first half of 2021.
Upon completion, Aon shareholders will own 63 percent of the combined company, while Willis Towers Watson will own the remaining 37 percent.
Willis Towers Watson chief executive officer John Haley said in a statement, “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.”
For Aon, the deal will create an innovative platform with capabilities to deliver better results for all stakeholders, including clients, colleagues, partners and investors.
Willis Towers provides insurance solutions for all types of business. It is one of Ireland’s leading insurance brokers. Credit Suisse is the financial advisor on the deal for Aon. Its legal advisers are Latham & Watkins, Freshfields Bruckhaus Deringer and Arthur Cox.
The financial advisor for Willis Towers Watson is Goldman Sachs and legal advisors are Weil, Gotshal & Manges, Skadden, Arps, Slate, Meagher & Flom and Matheson.