Home Finance US DOJ cannot challenge Aon/Willis Towers Watson merger: report

US DOJ cannot challenge Aon/Willis Towers Watson merger: report


It has been reported that the US Department of Justice (DOJ) cannot challenge the acquisition of antitrust division AON’s rival Willis Towers Watson (WTW), following an EC-related disinvestment package, to address any DOJ concerns. The additional disposal for the same is probably the highest now. potential consequences.

Yesterday, our partner publication Reinsurance News commented on the report that The US Department of Justice (DOJ) has adopted a dual-track strategy to review AON’s proposed acquisition of rival insurance and reinsurance broker Willis Towers Watson..

Together with settlement negotiations, related to possible additional disinvestment or measures, which we believe, is underway with a trial preparation, if it decides to challenge the deal.

As we reported earlier, it was stated that Aon already made a proactive treatment proposal to the US DOJ, as the broker tried to get on the negotiation front.

But in another report from expert antitrust and merger and acquisition (M&A) publisher CTFN, sources claim that even US DOJ employees believe that ultimately leadership in the department will not try to challenge the transaction.

CTFN’s Diane Alter reports that US DOJ employees have “real concerns”, largely related to the large corporate insurance broking segment, particularly where large multinationals buy their security and the coming together of Aon and Willis. How could that affect the competition there? .

While DOJ employees have been described as “hawkish,” the acting leadership there has been unwilling to bring a case against the deal with a more traditional approach.

It is likely that this traditional approach will involve additional disinvestment, some of our sources have told us, while the disinvestment package from the European Commission was significant, it has not been seen to properly address concerns over the larger corporate broking market. .

Positive stance from the European Commission on the Aon and WTW merger, which was earlier are now said to be ready to approve the deal here is A remedy package agreed, is reported by CTFN as DOJ’s case mishandled.

That EC remedy package, which includes a reinsurance broking unit and a package of other operations being sold to rival Gallagher, goes a long way towards satisfying the DOJ’s concerns, we understand, though it may be affecting the global corporate risk broking space Not as far as wanted. , Told.

As CTFN reports, the US DOJ has other concerns including health benefits consulting businesses, private retired health exchanges and pension counseling and actuarial offerings.

Interestingly, a CTFN source told the publisher that while the EC is believed to have “explored” the issue of large, global corporate risk broking, its measures package did not address concerns in that section.

Which potentially puts the DOJ on the back foot, as the last largest antitrust entity investigating the Aon and Willis deal, to find a remedy for itself.

The CTFN said the DOJ does not expect to make a decision until the Election Commission issues a statement on the merger, which is still scheduled for July.

Read also:

AON/WTW: Willis Re sells backed, as industry seeks broker choice.

AON sells German pension business to LCP as another step towards WTW merger.

AON and WTW agree on $3.57 billion sale of assets to Gallagher, including Willis Ray.

Gallagher Potential Buyer of $3 Billion Aon – Willis (WTW) Disinvestment: Report.

AON expects EC’s conditional nod to take over WTW: Reuters.

EC seeks response on sale of AON/WTW properties as MMC acquires talent.

AON in proactive proposal to US DOJ on Willis Towers Watson merger: Report.

AON – Willis Towers Watson Disinvestment Report expands to US and Bermuda.

Election Commission extends deadline for Aon-Willis Towers Watson merger.

AON – Willis Towers Watson merger deadline pushed back by EC.

AON – Willis Towers Watson merger evaluated by Singapore Competition Authority.

AON and Willis Towers Watson merger may face EC objection statement: Reuters.

AON and Willis Towers Watson’s merger to “significantly reduce competition”.

AON and WTW cite Alt. Capital, Arbitration and Markets in Defense of Mergers.

Aon and Willis Towers Watson unveil joint company leadership.

Willis’ reinvestment seen as necessary to complete AON-WTW merger.

If Aon/WTW leads to divestment, AJG seen as “best fit” for Willis Ray: KBW.

EC probes AON/WTW deal, cites competition as ‘concern’.

Aon+WTW to “Extend Proven Model of Disaster Bonds” – CEO’s Case & Haley.

Aon and Willis Towers Watson Merger.

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