Is the Aon/WTW deal collapse a positive for UK pensions?
The announcement that Aon and Willis Towers Watson (WTW) have called off their $30bn (£21.7bn) merger after the businesses reached an impasse with the US Department of Justice (DOJ) over competition issues did not come as a huge surprise to many.
While the two firms received approval (with conditions) for the merger by the European Commission in July, the tie-up had become increasingly bogged down over issues with the DOJ – issues which cumulated in the US agency filing a civil antitrust lawsuit on 16 June to stop the merger, claiming that the combination of the two firms would reduce competition for the business of American companies.
Aon and WTW had already initiated a number of disposals to try and meet the concerns of both EU and US competition authorities – including the sale of Aon’s pensions consulting, pension insurance broking, pensions administration and investment consulting business in Germany to Lane Clark & Peacock; the disposal of Aon’s US retirement business to private investment firm Aquiline and its Retiree Health Exchange operations to Alight; and the sale of Willis Re and a set of WTW corporate risk and broking and health and benefits services to Arthur J. Gallagher.
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