Aon sells US retirement companies to allow WTW merger
Fall: Accelerate our momentum to finalize our proposed merger with Willis Towers Watson.
Aon has sold its US annuity business to Aquiline and its Retiree Health Exchange activities to Alight to facilitate its merger with Willis Towers Watson.
The global consulting firm sold the two companies for a total gross purchase price of US $ 1.4 billion (£ 1 billion) to resolve regulatory issues from the US Department of Justice related to the proposed merger.
Around 1,000 employees of the US core pension consultancy, the US pension administration and the US part of the international pension consultancy will be transferred to the two divisions.
On the subject of matching items
This also includes Aons Benefit Index and SpecSelect, Risk Analyzer, DBCalc and YPR, as well as Aon Pooled Employer Plan products.
This is followed by the sale of Willis Re to Arthur J. Gallagher for $ 3.6 billion and Aon’s retirement and investment business in Germany, which was sold to Lane Clark & Peacock last month.
Overall, the two companies have announced the planned divestment of businesses with sales of approximately $ 2.3 billion in 2020.
Greg Case, CEO of Aon, said, “These agreements further accelerate our momentum towards the completion of our proposed combination with Willis Towers Watson. These are very capable teams who have shown exceptional commitment to our clients and our law firm. I want to acknowledge and reiterate their contributions. “We are confident that they will have similar opportunities with Aquiline and Alight.”
Jeff Greenberg, Chairman and Chief Executive of Aquiline, added, “The retirement solutions sector is benefiting from an increased focus on long-term investment security and risk management of plans. Aquiline’s extensive retirement and investment experience enables us to build on the strong business that Aon has built. “
Aon and Willis Towers Watson announced plans to merge last March and continue to work to obtain regulatory approval in all jurisdictions.
The European Commission is expected to deliver its judgment on August 3rd, which will also decide on behalf of the United Kingdom despite Brexit. The decision of the US Department of Justice is expected afterwards.
The combination is expected to generate cost synergies of $ 800 million by its third full year.
