On the go: Aon has sold two US businesses in order to complete its merger with Willis Towers Watson, after concerns were raised by the US Department of Justice.
On Thursday, the consultancy announced it had signed definitive agreements to sell its US retirement business to Aquiline and its retirement health exchange business to Alight, for a total of $1.4bn (£993m).
According to a market announcement, the agreement is intended to address certain questions raised by the US Department of Justice in relation to the combination of Aon and WTW businesses in the markets in which the companies are active.
Aon and WTW continue to work towards obtaining regulatory approval in all relevant authorities, the statement read.
The consultancies have previously announced the divestiture of Willis Re, a set of WTW corporate risk and broking and health and benefits services, and Aon's retirement and investment business in Germany, in order to move forward with the merger.
As reported by Pensions Expert in March 2020, Aon and WTW agreed on a merger which would see the companies creating the UK’s largest pensions consulting company and a worldwide insurance broker worth $80bn.
Aon anticipated that the deal – which was expected to be completed in 2021 – would provide annual pre-tax synergies and other cost reductions of $800m by the third full year of amalgamation.
Greg Case, chief executive at Aon, noted that the US business sale agreements “further accelerate our momentum to close our proposed combination with WTW”.
He added: "These are very capable teams that have demonstrated exceptional dedication to our clients and our firm.
“I want to recognize their contributions and reinforce that we are confident they will have similar opportunities with Aquiline and Alight.”
