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Bloomberg
Aon Plc agreed to buy Willis Towers Watson Plc in an almost $30 billion, all-stock transaction announced a year after previous takeover talks fell apart.
Under the terms of the agreement, Willis Towers Watson shareholders will receive 1.08 Aon shares for each of their shares, with existing Aon investors owning about 63% of the company once the deal is completed. Willis Towers Watson shareholders will get about $231.99 a share in stock. That’s 16% higher than the company’s closing price on March 6.
The deal “combines two highly complementary businesses into a technology-enabled global platform that is more relevant and responsive to client needs,†the companies said in a statement.
Brokerages, which help connect businesses looking for coverage with insurers, have been aggressively merging to diversify, boost commissions and serve customers who increasingly want to deal with fewer intermediaries.
The deal will add to earnings in the first full year of the combination, and provide annual pretax synergies and cost reductions of about $800 million by the third year, according to the statement.
Aon will keep its operating headquarters in London, with the combined firm led by Greg Case, Aon’s chief executive officer.