Aon to become world’s no.1 insurance broker after $30 billion deal

Aon is prepared to become the world’s No. 1 insurance broker after gaining conditional EU antitrust approval for its $30 billion bid for Willis Towers Watson, reported Reuters.

The biggest deal of the sector emerges as insurers grapple with the increasing claims and new challenges brought by the global coronavirus pandemic and climate change.

The company marked the deal a year ago to establish the world’s largest insurance broker ahead of Marsh & McLennan Companies Inc, proposed concessions to the European Commission earlier this month.

After receiving feedback from rivals and customers last week, the European Union is most likely not going to ask for more concessions. The London-headquartered company could have faced a charge sheet known as a statement of objections. The sheet states the concerns of the EU if market feedback is negative and if it had been denied to offer more concessions. This is not the case right now, reported Reuters.

After the Reuters story, Aon’s shares reversed losses and profited as much as 1.2%, whereas, Willis also cut losses and surged by 2.9%. The concessions package consists of – selling a swathe of Willis assets, including its reinsurance arm and its German retirement benefits and consulting business, sources notified Reuters.

Aon and the Commission, which is assigned to decide on the deal by July 27, declined to comment to Reuters.