Aon to merge with WTW creating $80bn firm

Written by Adam Cadle

09/03/2020

Aon and Willis Towers Watson (WTW) have announced a definitive agreement to combine in an all-stock transaction with an implied combined equity value of approximately $80bn.

The purchase of WTW is valued at $30bn and the transaction is expected to generate more than $10bn in shareholder value creation from the capitalised value of expected pre-tax synergies, based on the blended 2020 price to earnings ratio of WTW and Aon UK on 6 March 2020, net of $2bn in expected one-time transaction, retention and integration costs.

Existing Aon shareholders will own approximately 63% of the combined firm and existing Willis Towers Watson shareholders will own around 37%.

“The combination of WTW and Aon is a natural step in our journey to better serve our clients in the areas of people, risk and capital,” WTW CEO John Haley said.

This transaction accelerates that journey by providing our combined teams the opportunity to drive innovation more quickly and deliver more value.”

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