Aon and Willis Towers Watson confirm merger in $80bn all-stock deal

Global re/insurance broker Aon has agreed to merge with Willis Towers Watson in an all-stock transaction valued at approximately $80 billion. The announcement comes a year after  Aon said that it’s no longer pursuing a combination with the rival insurance broker.

The deal will see each Willis Towers Watson share exchanged for 1.08 shares of Aon at a fixed exchange ratio. Aon shareholders will own approximately 63 percent of Aon, and Willis Towers Watson shareholders will own approximately 37 percent on a fully diluted basis.

Upon completion, the combined firm will go to market under the Aon brand, and will maintain operating headquarters in London, UK.

The combined company will be led by Aon CEO Greg Case and Aon CFO Christa Davies.

John Haley, CEO of Willis Towers Watson, will take on the role of executive chairman "with a focus on growth and innovation strategy".

The board of directors will comprise proportional members from Aon and Willis Towers Watson’s current directors.

The transaction is expected to close in the first half of 2021, subject to regulatory and shareholder approvals and other customary closing conditions.

The transaction will be effected by an Irish scheme of arrangement.