The proposed $30bn merger of Aon and Willis Towers Watson has collapsed following intervention by the US Department of Justice.
The two parties have terminated an agreement that would have created the world’s largest insurance broker.
The deal, which was initially announced in March 2020 was rumoured to be in trouble when the US Department of Justice sued to block the merger, citing issues with competition in the market particularly in the reinsurance, retirement and pension planning markets.
In a statement the companies said they would end their litigation with the US Department of Justice and Aon would pay $1bn termination fees to Willis.
Aon chief executive officer Greg Case said: “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.
Case added: ”The DOJ position is remarkably out of step with the rest of the global regulatory community and we were confident that we would win in court.
“Unfortunately, while we requested a speedy trial, the current course with DOJ would likely have taken us well into 2022. At best, DOJ’s perspective demonstrates a fundamental misunderstanding of the marketplace. At worst, our combination was blocked by poor timing and other factors ultimately outside our control.”
Aon plc is incorporated in Ireland and headquartered in London. It has approximately 50,000 employees and offices in approximately 120 countries, including over 100 offices in the United States. In 2020, Aon reported revenues of more than $11 billion.
Willis Towers Watson plc is incorporated in Ireland and headquartered in London. It has approximately 45,000 employees and offices in more than 80 countries, including over 80 offices in the United States. In 2020, Willis Towers Watson reported revenues of more than $9 billion.
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