WTW plans to boost investment in organic and inorganic growth post $30bn deal collapse
Broker Willis Towers Watson has increased its share buyback programme by $1 billion after calling off its $30 billion merger deal with Aon, and plans to boost its "investment in organic and inorganic growth opportunities" over the next few years.
The company is expected to receive a $1 billion termination fee from Aon, under the terms of the deal announced in March last year. However, its $3.57 billion deal to sell certain brokerage operations to Arthur J Gallagher has now been cancelled.
Willis' board of directors have approved an increase of $1 billion to its existing share buyback programme, which has approximately $500 million remaining on the current open-ended repurchase authority.
The company plans to utilise its share buyback authorisation in 2021 and 2022, and stated that it would do so "based on many factors, including market and economic conditions, applicable legal requirements and other business considerations".
The share buyback programme has no termination date and may be suspended or discontinued at any time, it said.
Willis Towers Watson also expects to utilise the significant capital generated by cash flow from operating and non-operating activities to, among other things, increase its investment in organic and inorganic growth opportunities over the next three years.
The broker plans to update investors on other "important strategic matters" on September 9.
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