Could the Aon/Willis Towers Watson merger be in jeopardy?

25-03-2020

Claire Churchard

Could the Aon/Willis Towers Watson merger be in jeopardy?

It's the second time around for Aon’s acquisition of WTW, but the $30bn merger everyone is talking about has sailed into a COVID-19 induced storm of market volatility, not to mention heavy scrutiny from the regulators. With so much external pressure, what is the forecast for the deal, and will it even go ahead? Intelligent Insurer investigates.

“Does the combined entity provide enhanced service and solutions for the benefit of the client?”. Stefan Holzberger, senior managing director and chief rating officer at AM Best Rating Services.

· Renewed deal back on the table just as COVID-19 goes truly global
· Share prices for both brokers continue to fall as virus crisis deepens
· Precedents already there for external market forces to scupper M&As
· Regulator probes expected to add to deal stressors   

With markets in turmoil, and rumours that trading centres could shut down, this M&A has hurdles aplenty to clear before it can get close to completion.


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