Aon has agreed to pay $1bn in termination fees to Willis Towers Watson (WTW) following the collapse of the merger of the two firms.
Last month, Health & Protection reported the US Department of Justice (DoJ) had filed a civil antitrust lawsuit blocking Aon’s proposed $30bn acquisition of Willis Towers Watson, which would have brought together two of the big three global insurance brokers.
In a statement released today, Aon revealed the firms have agreed to terminate the merger agreement and end litigation with the DoJ.
Aon further revealed it will pay the $1bn termination fee connected to the collapse of the deal to WTW.
It added that Willis Towers Watson’s proposed scheme of arrangement had lapsed and both firms will now move forward independently.
Commenting on the collapse of the deal, 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 U.S. 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.”
Case also praised staff at the firm, adding: “Our respect for Willis Towers Watson and the team members we’ve come to know through this process has only grown.”
Willis Towers Watson CEO John Haley added: “Our team’s resilience and commitment are a source of pride and confidence.
“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.”
Both firms will provide further financial updates and outlooks on their respective Q2 2021 earnings calls, which take place on 30 July for Aon and 3 August for Willis Towers Watson.
