Aon is set to buy Willis Towers Watson for $30bn, in a move that will create an $80bn consultancy giant.
The deal values Aon at $50bn and Willis Towers Watson at $30bn.
The announcement reignites a deal that almost took place in March 2019, which was quickly dropped following a stock market announcement that talks were in process.
The combined company will trade under the Aon brand.
Aon will maintain operating headquarters in London, United Kingdom. John Haley will take on the role of Executive Chairman with a focus on growth and innovation strategy. The combined firm will be led by Greg Case and Aon Chief Financial Officer Christa Davies. The Board of Directors will comprise proportional members from Aon and Willis Towers Watson’s current directors.
Aon says the deal will increase cash flow by 10 per cent once full synergies are realised, by which time $10bn of shareholder value is expected to have been created.
Willis Towers Watson shareholders will receive 1.08 Aon shares for each Willis Towers Watson share, representing a 16.2 per cent premium to Willis Towers Watson’s closing share price on 6 March 2020.
“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,” said Willis Towers Watson CEO John Haley. “This transaction accelerates that journey by providing our combined teams the opportunity to drive innovation more quickly and deliver more value.”
“This combination will create a more innovative platform capable of delivering better outcomes for all stakeholders, including clients, colleagues, partners and investors,” said Aon CEO Greg Case. “Our world- class expertise across risk, retirement and health will accelerate the creation of new solutions that more efficiently match capital with unmet client needs in high-growth areas like cyber, delegated investments, intellectual property, climate risk and health solutions.”