Aon, Willis call off $30 billion merger agreement
In a statement on Monday, Aon Plc and Willis Towers Watson announced that they have mutually agreed to terminate a merger agreement between the two firms. The $30 billion merger would have been the world’s largest insurance broker, reported Reuters.
The merger was called off due to objections by the Department of Justice (DOJ).
“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,” said Aon CEO Greg Case.
“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.” He further added.
As part of the termination, Aon will pay the $1 billion termination fee to Willis Towers Watson.
The merger was announced on March 9, 2020. In June 2021, the DOJ filed a lawsuit against the insurance firm to stop the merger between the two companies. The reason was cited to be reduced competition, which in turn would increase the prices.