US DOJ may not challenge Aon / Willis Towers Watson merger: Report

US DOJ may not challenge Aon / Willis Towers Watson merger: Report

Its been reported that the US Department of Justice (DOJ) Antitrust Division may not challenge Aons acquisition of competing Willis Towers Watson (WTW), which, after the EC associated divestment package, suggests additional disposals to correct any DOJ concerns is possibly now the most likely outcome.Yesterday, our sibling publication Reinsurance News talked about reports that the United States Department of Justice (DOJ) has actually adopted a dual-track method for its evaluation of Aons suggested acquisition of competing insurance and reinsurance broker Willis Towers Watson.
With synchronised settlement talks, related to potential extra divestments or solutions we assume, said to be underway in tandem with preparations for a trial, in case it chooses to challenge the deal.
As we d formerly reported, it was said that Aon had already made a proactive treatment offer to the US DOJ, as the broker looked for to get on the front-foot of negotiations.
However another report from expert antitrust and acquisitions and mergers (M&A) publisher CTFN, points out sources declaring that even staff at the United States DOJ think that ultimately the leadership at the department will not look for to challenge the transaction.
CTFNs Diane Alter reports that personnel at the US DOJ continue to have “genuine issues”, which are mainly related to the big business insurance broking section, particularly where huge multinationals purchase their defense and how the coming together of Aon and Willis might affect competitors there.
While DOJ personnel are explained as “hawkish” the acting leadership there does not seem disposed to bring a case against the offer, with a more traditional technique expected.
Its likely this standard technique would involve extra divestments, a few of our sources have actually told us, as while the plan of divestments from the European Commission was significant, it has not been seen to properly address issues over the big corporate broking market.
The positive position on the Aon and WTW merger from the European Commission, which was formerly stated to have been prepared to approve the offer now there is a remedy bundle concurred, is reported by CTFN as having worn down the case for the DOJ.
That EC solution plan, that includes reinsurance broking system and a package of other operations being sold to rival Gallagher, goes a long method towards satisfying concerns of the DOJ, we comprehend, although not as far as it wanted on the international business threat broking space, were informed.
There are stated to be other concerns at the US DOJ, including health benefits speaking with business, personal retiree health exchanges and pensions consulting and actuarial offerings in the United States, according to CTFNs report.
Surprisingly, a source of CTFN told the publisher that the EC is considered to have “caved” on the concern of big, international corporate threat broking, with its treatment package not solving issues because sector.
Which potentially puts the DOJ on the back foot, in having to find a solution to that itself, as being the last most significant antitrust unit examining the Aon and Willis deal.
CTFN said that the DOJ is not expected to make any decision understood until after the EC issues a statement on the merger, which is still slated for July.
Check out:
— Aon sells German pensions service to LCP, as additional action towards WTW merger.
— Gallagher likely buyer of $3bn Aon– Willis (WTW) divestments: Report.
— Aon & & Willis Towers Watson expose management of combined business.
— Aon & & Willis Towers Watson merger to “substantially decrease competition”.
— EC extends Aon– Willis Towers Watson merger deadline again.
— Aon in proactive deal to US DOJ on Willis Towers Watson merger: Report.
— If Aon/ WTW results in divestitures, AJG seen as “finest fit” for Willis Re: KBW.
— EC asks for feedback on sale of Aon/ WTW possessions, as MMC gains talent.
Aon expected to get conditional WTW acquisition approval from EC: Reuters.
— Aon & & WTW concur $3.57 bn sale of properties to Gallagher, including Willis Re.
— Aon/ WTW: Willis Re sale supported, as industry desires broker choice.
— EC examines Aon/ WTW offer, mentions competitors “issues”.
— Aon– Willis Towers Watson merger assessed by Singapore competition authority.
— Aon– Willis Towers Watson divestiture reports expand to United States & & Bermuda.
— Aon & & WTW point out alt. capital, disintermediation & & marketplaces in defence of merger.
— Aon– Willis Towers Watson merger due date pressed back by EC.
— Aon & & Willis Towers Watson merger might deal with EC declaration of objection: Reuters.
— Willis Re divestment seen needed for Aon– WTW merger to complete.
— Aon + WTW to “extend tested design of disaster bonds”– CEOs Case & & Haley.– Aon & Willis Towers Watson to combine.

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