Aon-Willis Towers Merger Gets Conditional Approval in the EU 

The European Commission said Friday that it has cleared the proposed $35 billion acquisition of Willis Towers Watson PLC by rival Aon PLC subject to meeting certain commitments offered by Aon over potential competition breaches.

The European Union's antitrust authority said the commitments include the divestment of central units of Willis Towers Watson to brokerage Arthur J. Gallagher, which would improve the brokerage's footprint in the European Economic Area.

Both Willis Towers Watson and Aon are leading players in the insurance and reinsurance brokerage markets, said Margrethe Vestager, the EU's antitrust chief. "The remedy package accepted by the Commission ensures that European companies, including insurance companies and large multinational customers, will continue to have a good choice and good services when selecting a broker suitable for their needs," Vestager added.

The deal still has regulatory hurdles to clear in the U.S. In June, the Justice Department filed an antitrust lawsuit challenging insurance broker Aon PLC's proposed acquisition of Willis Towers Watson PLC, alleging the potential deal would lead to higher prices and reduced innovation for the U.S. businesses, employers and unions that rely on their services.

Earlier this week, U.S. District Judge Reggie Walton said he plans to hold trial proceedings for a few days from Nov. 18, and then again during an opening in his schedule from Dec. 20 to Dec. 22.

A decision on the deal, which was announced in March 2020, could take weeks or months after the proceedings take place.

Source: Market Watch