Aon acquisition of Willis Towers Watson

Irish-domiciled insurance broker Aon Plc will be acquiring an also Irish-domiciled insurance broker Willis Towers Watson Plc. (Willis) in what has been set to become as the world’s biggest insurance merger ever. The merger talks started around January of 2019 and proceeded in an on-and-off tempo. Exploratory talks first started on January 30, 2019. The merger is set to be completed and closed by mid-2021. Aon will be the surviving entity. The $30 billion, all-stock acquisition merges two of the world’s leading brokers. Aon and Willis are the second and third largest insurance brokers in the world. The largest is Marsh and McLennan. This is until the Aon-Willis merger is completed. The merger, creating an $80 billion (equity value) company, will create the largest insurance broker in the world, surpassing Marsh & McLennan. Marsh, in April of 2019, acquired British rival Jardine Lloyd Thompson for $5.7 billion to create what was then the world’s largest insurance broker.

Both Aon and Willis, in addition to insurance and reinsurance broking, provide investment and benefits advice. Both are noted for their retirement business as well. Consulting, investments and retirement business comprises 16. percent of Aon’s revenue in 2019, while it comprised 48.6 percent of Willis’ 2019 revenue.

Willis shareholders will receive 1.08 Aon shares for each of their shares. The offer represents a premium of 16.2 percent for Willis to the closing price of Willis shares on March 6, 2020. Willis had demanded for this “meaningful premium” at the range of 20 percent. Upon completion of the deal, Aon shareholders will own 63 percent and Willis shareholders will own 37 percent of the combined or merged company on a fully diluted basis. Aon structure and the controlling shareholders for Aon will not change. Management will be retained by Aon Chief Executive Officer Greg Case and Aon Chief Financial Officer Christa Davies. But Willis CEO John Haley will become the executive chairman. The Board of Directors will be represented proportionately. The financial advisor is Credit Suisse Securities (USA) for Aon and Goldman Sachs & Co. for Willis. Aon will keep its headquarters in London.

Its Philippine operations through Aon Insurance and Reinsurance Brokers Phils., Inc. will not be affected. Aon operates in 120 countries including the Philippines.


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Previous Article

Ideate. Create. Innovate.

Next Article

Fund the National Integrated Cancer Control Act!

Related Posts

Opinion - BusinessMirror
Read more

Let’s help preserve humanity’s lifeblood

The Earth is known as the “Blue Planet” because 71 percent of its surface is covered with water. The oceans hold about 96.5 percent of all Earth’s water. Of the waters occupying the planet’s surface, only 3 percent is considered freshwater. And most of this freshwater reserve is inaccessible to humans — locked up in polar ice caps or stored too far underneath the Earth’s surface to be extracted. Furthermore, much of the freshwater that is accessible has become highly polluted. This leaves us with roughly 0.4 percent of the Earth’s water that is usable and drinkable to be shared among seven billion people.

Column box-Sonny Angara 2
Read more

A big push for micro, small and medium enterprises

Earlier this week, we sponsored a measure that will institutionalize the Shared Service Facilities (SSF) Project of the Department of Trade and Industry (DTI). Through the SSFs micro, small and medium enterprise (MSME) qualified beneficiaries are provided with the appropriate machinery, equipment, and tools under a “shared” system that would address known gaps in the value chain, most notably the lack of adequate and appropriate facilities, which hinder them from elevating their products and services and enabling the creation of export-ready goods.

Read more

Women, economics, and economy

IN 1994, Ms. Universe Sushmita Sen gave her award-winning answer to the question of a woman’s true essence. Ms. Sen said, “Just being a woman is a gift of God that all of us must appreciate. The origin of a child is a mother, who is a woman.” Her reply implies that a woman’s reproductive role centers on being a biological bearer of infants—something that is expected and natural.