Aon and Willis Towers Watson (WTW) have announced that they have signed an agreement to sell Willis Re and a set of WTW corporate risk, broking, health and benefits services to Arthur J. Gallagher & Co (Gallagher) for a total consideration of $3.57bn (£1.8bn).
The agreement is intended to address certain questions raised by regulators over jurisdictions concerns. Aon and WTW said they will continue to work toward “obtaining additional regulatory approval in all relevant jurisdictions”, including in the US, where regulators are conducting an independent review of the Aon and WTW combination.
Greg Case, CEO, Aon, said: “This agreement demonstrates strong momentum on the path to close our proposed combination with Willis Towers Watson.
“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 pending combination with Willis Towers Watson is expected to deliver revenue growth, margin expansion through delivery of better solutions, increased cash flow and earnings growth and a strong balance sheet, to generate attractive returns for shareholders in the future.
It also is expected to deliver a $800m (£570m) of cost synergies taking into account the divestiture and other potential remedies.
John Haley, CEO, Willis Towers Watson, added: “We announced this combination knowing that the complementary capabilities of our two firms would allow us to deliver more value to clients and opportunities for colleagues.
“The events of the last year have only reinforced that rationale, and this announcement is an important step toward realising that potential,” said “We appreciate the extraordinary value these colleagues have delivered to our clients and our company. We are confident they have a bright future at Gallagher.”