Aon to buy Willis Towers Watson in all-stock deal

Aon AON, +2.33% said it's buying insurance broker Willis Towers Watson WLTW, +1.58% in an all-stock deal the firms say gives an implied combined equity value of approximately $80 billion. Terms call for each Willis Tower Watson share to be exchanged for 1.08 Aon shares in a deal that will give Aon shareholders 63% of the combined firm. Based on Aon's March 6 close, the offer values each Willis Towers Watson share at $231.99, a 16% premium. The companies expect $800 million per year in pre-tax cost synergies in the third year.

Source: Market Watch