The European Commission has granted a "conditional approval" for the proposed combination of Aon and Willis Towers Watson, giving a sigh of relief to the broking giants that faced heavy antitrust scrutiny and criticism since announcing their $30 billion deal last year.
"This is a major step that demonstrates continued progress toward obtaining regulatory clearances for the proposed combination," the companies said in a joint statement, adding that "both firms operate across broad, competitive areas of the economy and believe this approval affirms that our proposed combination will accelerate innovation on behalf of clients, creating more choice in an already dynamic and competitive marketplace."
Aon and Willis Towers Watson stated that they are committed to the benefits of the combination and continue to work toward obtaining regulatory approval in all relevant jurisdictions.
The combination remains subject to the receipt of required regulatory approvals and clearances, including with respect to US antitrust laws, as well as other customary closing conditions.
The US Department of Justice recently filed an antitrust lawsuit in the the District of Columbia to block the "harmful" merger of Aon and WTW asserting that the deal would eliminate vital competition in the market, resulting in higher prices, and reducing innovation for US businesses. The brokers have criticised the legal action stating that it reflects the department's "lack of understanding".
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