First announced in May, the US$3.57 billion AJG-WTW deal was part of a proposed regulatory remedy for the then pending, and now no-go, wider transaction between Aon and WTW. It was noted at the time that the completion of AJG’s purchase would depend on Aon receiving antitrust approvals for its own swoop.
Webinar: How can insurers incentivise climate responsibility? Learn more here!
As reported by Insurance Business, Aon and WTW have mutually agreed to terminate their business combination agreement after hitting a roadblock in the US. The move will see Aon pay a US$1 billion termination fee to WTW.
As a result, the acquisition agreement between AJG and WTW is now also terminated.
In a statement, AJG noted: “In conjunction with the termination announcement, Gallagher plans to exercise the special optional redemption feature of its US$650 million tranche of 10-year senior notes issued on May 20, 2021.
“Additionally, Gallagher is evaluating opportunities to deploy its excess cash position through its merger programme as well as possible share repurchases. The company plans to provide further updates on its second quarter 2021 earnings call on July 29, 2021 after the market close.”
Source: Insurance Business Magazine
