European Commission to review $30bn Aon/WTW deal

The European Commission has initiated a Phase II review of the Aon/Willis Towers Watson (WTW) merger.

The move was confirmed by Aon in a statement to its investors on 21 December 2020.

Aon said in the statement: “The Phase II review is a common next step in the review process for a transaction of this size and complexity under EU Merger Regulation and the firm remains on track to close the combination in the first half of 2021.”

It continued: “As stated previously, Aon’s and Willis Towers Watson’s businesses are complementary, operating across broad, very competitive areas of the economy, and Aon remains confident of a positive outcome without any divestitures.

“Aon expected a thorough review of this combination and will continue to work closely with all the relevant regulators, including the EC. The firm looks forward to continuing its dialogue with the EC throughout the Phase II review process.”

Merger
Insurance Age reported last November that Aon had filed a merger notification in the European Commission, seeking approval for its $30bn (£22.9bn) purchase of Willis Towers Watson.

The deal between Aon and WTW was announced on 9 March 2020 and will see the two broking giants merge in an all-stock transaction, which values the combined businesses at approximately $80bn.

Aon and WTW shareholders voted in favour of all proposals to combine the two businesses in August. The agreement will see the creation of the world’s largest broker.

Aon CEO Greg Case has previously described the deal as the most meaningful in Aon’s history.

In July the US Department of Justice requested more information on the deal under antitrust rules.

The companies first confirmed they were in talks in March 2019, but one day later Aon said it intended to walk away from a potential deal.

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