had moved to block the planned acquisition by Aon, arguing that it would eliminate competition and lead to higher prices and reduced innovation for customers in the US."> had moved to block the planned acquisition by Aon, arguing that it would eliminate competition and lead to higher prices and reduced innovation for customers in the US." /> had moved to block the planned acquisition by Aon, arguing that it would eliminate competition and lead to higher prices and reduced innovation for customers in the US."> Aon/WTW terminate proposed merger - Insurance Today had moved to block the planned acquisition by Aon, arguing that it would eliminate competition and lead to higher prices and reduced innovation for customers in the US.">

Aon/WTW terminate proposed merger

Aon and Willis Towers Watson have agreed to terminate a proposed £21.5bn merger following an “impasse” with the US Department of Justice.

The Department of Justice last month moved to block the planned acquisition by Aon, arguing that it would eliminate competition and lead to higher prices and reduced innovation for customers in the US.

Attorney General Merrick B. Garland said the move demonstrated the DoJ’s commitment to stopping “harmful consolation”.

“American companies and consumers rely on competition between Aon and Willis Towers Watson to lower prices for crucial services, such as health and retirement benefits consulting. Allowing Aon and Willis Towers Watson to merge would reduce that vital competition and leave American customers with fewer choices, higher prices, and lower quality services,” he said.

If permitted to merge, the complaint alleged the two could “use their increased leverage to raise prices and reduce the quality of products relied on by thousands of American businesses - and their customers, employees, and retirees”.

Aon CEO Greg Case said: “Despite regulatory momentum around the world, including the recent approval of our combination by the European Commission, we reached an impasse with the US Department of Justice. The DOJ position overlooks that our complementary businesses operate across broad, competitive areas of the economy. We are confident that the combination would have accelerated our shared ability to innovate on behalf of clients, but the inability to secure an expedited resolution of the litigation brought us to this point.”

Both firms will provide further financial updates and outlooks with their respective Q2 2021 results, which take place on July 30 for Aon and August 3 for Willis Towers Watson. As a result of the failed merger, AJ Gallagher has also confirmed that its agreement to buy a collection of broking operations from Willis Towers Watson - including Willis Re - has now been cancelled.

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