Insurance brokers Aon and Willis Towers Watson cancel their $ 30 billion merger

A office building with the Aon logo is visible in means of loosening of restrictions on coronavirus disease (COVID-19) in the central business district of Sydney, Australia, June 3, 2020.

Loren Elliott | Reuters

Insurance brokers Aon and Willis Towers Watson said on They agreed on Monday to terminate their $ 30 billion merger deal and end their litigation with the United States Department of Justice.

The deal would bring forward Aon, based in London of the world’s largest insurance broker Marsh & McLennan.

“Although regulatory momentum around the world, including the recent approval of our combination by the European Commission, we have reached an impasse with the United States Department of Justice, “said Aon CEO Greg Case Case in a declaration.

Aon will pay Willis $ 1 billion as a resolution fee, he said.

In June, the Department of Justice (DOJ) had sued to block the deal, saying he would reduce competition and I could lead to higher prices.

The DOJ said the combination of the two big insurance brokers would hurt competition in reinsurance mediation, retirement e pension planning e private retired multicarrier health exchanges.

A federal judge had narrowed the scope of the cause last week, which came after Aon and Willis agreed to give in to win approval in the United States and Europe after the discussions with regulators.

The disposals included Aon’s US Pension Unit, Health Exchange for US Retirees, and Retirement business in Germany. Willis Towers Watson’s was also included global reinsurance business. EU antitrust regulators approved the merger earlier this month on condition on some of Sales.

Aon ranks second and Willis fifth among US commercial insurance brokers in the United States market, according to a survey by Business Insurance magazine.

The other major brokers in the United States is Marsh & McLennan, Arthur J Gallagher and Alliant Insurance Services.

In April, insurance company Chubb said it no longer wanted to buy a smaller rival, Hartford Financial Services, after it questlast rejected Chubb’s takeover offers. post declining to engage in speak out on the $ 23.24 billion buyout proposal.

Aon’s shares they were up 4% to $ 242, while Willis Tower’s stock was down 3.5% to $ 218 in premarket trading.

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