Aon – Willis Towers Watson merger assessed by Singapore competition authority

Aon – Willis Towers Watson merger assessed by Singapore competition authority

The merger of insurance and reinsurance broking and consultancy giants Aon and Willis Towers Watson (WTW) continues to be looked at by watchdogs, with the Competition and Consumer Commission of Singapore the current to examine the deal.The Competition and Consumer Commission of Singapore has actually provided a consultation on the proposed combining of Aon with competing Willis Towers Watson, asking for feedback on the offer and stating it is assessing whether the offer would infringe section 54 of its Competition Act.
Competition watchdogs around the world have actually been looking for and evaluating the deal feedback from interested parties, to determine whether it is thought the merger would result in a decrease in levels of competitors in affected markets, including insurance and reinsurance broking.
With both Aon and Willis Towers Watson active in Singapore across broking and other sectors of their companies, its natural for the Competition and Consumer Commission of Singapore (CCCS) to seek this feedback.
The CCCS stated that it has actually now received an alert from Aon for a decision on the proposed merger, so the assessment aims to establish whether the acquisition of Willis Towers Watson by Aon might result in a substantial minimizing of competitors within any market in Singapore.
Aon stated that the proposed transaction will not lead to a substantial reducing of competitors in 2 markets it views as pertinent in Singapore, which are the supply of retirement advantages seeking advice from services in Singapore, or potentially regionally, and the international supply of human capital consulting services.
In these locations Aon and WTW have overlapping services, however Aon submits that the merger will not lower competition in these markets.
Its intriguing that no reference of insurance or reinsurance broking is made in this case, while both business do have broking operations in Singapore.
The CCCS does highlight that both Aon and WTW provide industrial or corporate danger broking and also reinsurance services in Singapore, so it seems the assessment would also invite feedback on those areas of the pair of companies.
As our sister publication Reinsurance News has actually previously reported, progress is reportedly being made on a remedy package proposal for European Commission regulators as the merger parties aim to avoid a statement of objections.
A sale of Willis Re, the reinsurance broking unit, is said to be amongst the proposals and other reports recommend some commercial broking units such as WTWs French operations under Gras Savoye are also amongst possible divestiture solutions.
There have actually also been reports that the US competitors authorities may have issues connected to reinsurance.
As we d reported before, we comprehend at least one prospective buyer for Willis Re had already made itself recognized, while others are most likely waiting on any official procedure to start, which some of our sources suggest could be anytime now, or even already be independently underway.
With the celebrations hoping to close this offer prior to the end of the first-half of 2021, we are now at the phase where they will need to engage with the numerous competition guard dogs from various countries, to seek approval and pacify any issues about their merger.
That indicates were getting near crunch time for the offer, with objections or approval most likely to be heard within weeks, unless this is going to drag on into H2.
Also read:
— Aon & & Willis Towers Watson merger to “substantially minimize competitors”.
— Aon & & WTW point out alt. capital, disintermediation & & marketplaces in defence of merger.
— Willis Re divestment seen needed for Aon– WTW merger to complete.
— EC examines Aon/ WTW deal, cites competitors “concerns”.
— Aon & & Willis Towers Watson reveal management of combined business.
— Aon & & Willis Towers Watson merger might deal with EC statement of objection: Reuters.
— If Aon/ WTW leads to divestitures, AJG viewed as “finest fit” for Willis Re: KBW.
— Aon + WTW to “extend proven design of disaster bonds”– CEOs Case & & Haley.– Aon & Willis Towers Watson to merge.

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