Aon plays down concerns over EC probe into Willis deal

Broker Aon has played down concerns around the European Commission (EC) initiating a Phase II review in connection with its $30 billion combination with Willis Towers Watson.

The all-stock deal, which would merge the world’s second and third largest brokers and create the world’s biggest broker, has attracted regulatory scrutiny over concerns it would mean too much pricing power for the combined entity. A full probe by the EC could take as long as five months.

But, in a statement, Aon said that a review of this nature as anticipated and it remains confident the deal will go ahead and close in the first half of 2020.

“The Phase II review is a common next step in the review process for a transaction of this size and complexity under EU Merger Regulation and the firm remains on track to close the combination in the first half of 2021,” Aon said.

“As stated previously, Aon's and Willis Towers Watson's businesses are complementary, operating across broad, very competitive areas of the economy, and Aon remains confident of a positive outcome without any divestitures.

“Aon expected a thorough review of this combination and will continue to work closely with all the relevant regulators, including the EC. The firm looks forward to continuing its dialogue with the EC throughout the Phase II review process.”