Aon (AON), Willis Towers (WLTW) scrap $30 billion merger

• The Justice Department had alleged the tie-up of insurance brokers would lead to higher prices and reduced innovation for U.S. 

 

Willis Towers Watson and Aon plc (AON) agree to terminate their merger agreement and end litigation with the DoJ; AON to pay WLTW a $1 bln termination fee 

• "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. "The DOJ position overlooks that our complementary businesses operate across broad, competitive areas of the economy. 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."
• In connection with the termination of the business combination agreement, Aon will pay the $1 billion termination fee to Willis Towers Watson, Willis Towers Watson's proposed scheme of arrangement has now lapsed, and both organizations will move forward independently. Both firms will provide further financial updates and outlooks on their respective Q2 2021 earnings calls, which take place on July 30 for Aon and August 3 for Willis Towers Watson.