On the go: Consulting giant Aon is considering a bid to buy rival Willis Towers Watson, in a move that would send shockwaves through the pensions advisory industry.
Aon confirmed the prospective bid in response to a Bloomberg report published on Tuesday, although no final decision has been made.
"The Company confirms that it is in the early stages of considering an all-share business combination with Willis Towers Watson. The Company emphasizes that, at this point, its evaluation of a potential transaction is at a preliminary stage and there can be no certainty that any transaction will take place nor as to the form or terms on which any transaction might be pursued", it said in a regulatory announcement.
"A further announcement will be made in due course, as appropriate."
An acquisition would see two of the so-called Big Three pensions consultancies combine, further increasing their market share. Mercer, the third company in the group, announced its own acquisition of competitor JLT late last year.
According to anonymised figures compiled by the Competition and Markets Authority, the deal would give Aon control of between 27 and 32 per cent of the investment consulting market by revenue, and a market share of between 21 and 32 per cent in fiduciary management.
The competition watchdog referenced the fact that no one company has a market share of more than 20 per cent in its finding that the industries were not highly concentrated.
Willis Towers Watson declined to comment.
