Aon & Willis Towers Watson merger may face EC statement of objection: Reuters

Aon & Willis Towers Watson merger may face EC statement of objection: Reuters

According to Reuters, the Aon and Willis Towers Watson (WTW) merger may deal with a statement of objections from the European Commission (EC), as the authority seeks concessions to resolve competition concerns.Its the current turn in the biggest insurance and reinsurance broker mega-merger and the recommendation from Reuters is that the EC has concerns the deal could lead to lowered rate competitors and limit development.
Reuters said that sources suggest an antitrust warning is on the way, in the type of an official statement of objections to the offer that will lay out the capacity for the deal to damage competitors.
As weve said in the past, any objections to the acquisition of Willis Towers Watson (WTW) by Aon will require to deal with the question of whether the scale and market penetration of a combined Aon and Willis Towers Watson will provide more pricing power.
Its still not clear precisely where in business these issues could lie. Locations of focus, such as how much choice would stay offered to big clients, as well as choice in specific geographies where the deal could make Aon far more dominant as a market leader, are stated to be the locations that concerns might be raised about.
The clock on the EC competitors authority evaluation of the merger deal had actually already been halted, while the European Commission (EC) waits for more data from the brokers to support their case to continue, our sibling publication Reinsurance News had explained before.
As our sis publication likewise described, the unpredictability over the review by numerous nations competition authorities has actually heightened interest in the insurance coverage and reinsurance broking merger among investors in the merger arbitrage and event driven hedge fund space.
Reuters stated that if the EC publishes a statement of objections, as its sources recommend, it might hinder Aons hopes of closing the merger in the first-half of this year.
However Aon would be able to react to any declaration, through concessions created to resolve issues raised by the competitors authority, Reuters said.
Its presumed concessions would indicate divestments and while reinsurance system Willis Re stays one location of focus, our sources also suggest that a local or geographic focus could likewise be an angle for prospective units that require to be unloaded in order to get the deal through.
Reuters likewise said that Aon has actually been “in informal discussions about concessions” however that no main offer has been made up until now.
Also check out:
— Aon & & WTW cite alt. capital, disintermediation & & marketplaces in defence of merger.
— EC investigates Aon/ WTW offer, points out competition “issues”.
— Aon & & Willis Towers Watson merger to “substantially minimize competitors”.
— If Aon/ WTW causes divestitures, AJG viewed as “finest fit” for Willis Re: KBW.
— Aon & & Willis Towers Watson reveal management of combined company.
— Willis Re divestment seen needed for Aon– WTW merger to complete.
— Aon + WTW to “extend proven design of catastrophe bonds”– CEOs Case & & Haley.– Aon & Willis Towers Watson to combine.

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