The wave of mergers among insurance and reinsurance brokers continues: The British Aon takes over the rival Willis Towers Watson, which was formed from a merger, for just under $ 30 billion. Both companies announced this. This would create the world’s largest insurance broker – which is why regulators should take a critical look at the plans.
The Willis Towers Watson shareholders are to receive 1.08 Aon shares for each of their shares, a premium of 16 percent on Friday’s closing price. You hold around 37 percent of the merged company.
The merged company, which is to operate under the name Aon and is managed by Aon boss Greg Case, has a market value of around $ 80 billion, generates sales of $ 20 billion and an annual cash flow of $ 2.4 billion. The future partners hope for $ 800 million in annual synergies.