Aon plc (AON) and Willis Towers Watson (WLTW) have agreed to combine in an all-stock deal with an implied combined equity value of approximately $80 billion. Each Willis Towers Watson shareholder will receive 1.08 Aon ordinary shares for each ordinary share. Aon shareholders will continue to own the same number of ordinary shares in the combined company. Upon completion, Aon shareholders will own approximately 63% and Willis Towers Watson shareholders will own approximately 37% of the combined company.
Willis Towers Watson is a global advisory, broking and solutions company. It has more than 45,000 employees and services clients in more than 140 countries. The combined company, to be named Aon, will be a technology-enabled global professional services firm focused on the areas of risk, retirement and health. The combined company will be led by Greg Case and Christa Davies. John Haley will assume the role of Executive Chairman. The companies expect the transaction to complete in the first half of 2021.
Aon estimates the combination will provide annual pre-tax synergies and other cost reductions of $800 million by the third full year of closing. The transaction is expected to be accretive to Aon adjusted earnings per share in the first full year of the combination with peak adjusted EPS accretion in the high teens after full realization of $800 million of pre-tax synergies. The companies expect the transaction to generate over $10 billion of shareholder value creation from the capitalized value of the expected pre-tax synergies.
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