Brokers terminate $30 billion merger agreement following “an impasse” with the US Department of Justice
Top three brokers Aon and WTW have announced today the firms have agreed to terminate their $30 billion merger and end litigation with the US Department of Justice (DOJ). The proposed combination was first announced on 9 March 2020.
“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,” said Aon CEO Greg Case.
“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.”
Willis Towers Watson CEO John Haley added: “Going forward, our focus remains steadfast on our colleagues, our clients and our shareholders. We believe we are well-positioned to compete vigorously across our businesses around the world and will continue to introduce important innovations to the market. We appreciate and deeply respect all the Aon colleagues we got to know through this process.”
In connection with the termination of the business combination agreement, Aon will pay the $1 billion termination fee to Willis Towers Watson, Willis Towers Watson’s proposed scheme of arrangement has now lapsed, and both organisations will move forward independently.