Aon has stated that it is not pursuing an “all-share business combination” with Willis Towers Watson, a deal which would have seen the combination of two of the world’s largest insurance brokers.
On Tuesday, following extensive speculation, Aon, worth around $40 billion, released a statement confirming that it was in the early stages of considering an all-share business combination with Willis, worth around $22 billion.
However, the next day, Aon released a second statement stating that it was no longer pursuing a business combination with Willis.
In the statement, Aon said: “Consistent with Aon's stated focus on return on invested capital the firm regularly evaluates a variety of potential opportunities within and adjacent to its industry.”
It said it had “considered such a possibility with regard to Willis Towers Watson,” but confirmed that it “does not intend to pursue this business combination.”
Aon was forced into public confirmation concerning its interest in accordance with Irish Takeover Rules, as Willis Towers Watson is an Irish company and is therefore subject to Irish regulatory requirements.
In its second statement, Aon explained: “As a result of media speculation, those regulations required Aon to make the disclosure at a very early stage in the consideration of a potential all-share business combination.”
Willis Towers Watson has declined to comment.
The news follows a deal between two other large insurance brokers in September 2018, when Marsh & McLennan Companies agreed to acquire Jardine Lloyd Thompson Group.
