Aon (AON) Takes Measures for Pending Willis Towers Buyout

·2-min read

Aon plc AON has inched closer to acquire Willis Towers Watson Public Limited Company WLTW. To this end, both companies agreed to sell Willis Re and a set of Willis Towers Watson corporate risk and broking and health and benefits services to Arthur J. Gallagher & Co. AJG. The sale with fetch $3.57 billion.

These steps were taken to satisfy European Commission’s questions.
Aon remains committed to $800 million of cost synergies.

Rationale Behind the Deal

The combined company is expected to deliver revenue growth and margin expansion via provision of better solutions. The consolidation will also lead to better cash flow and earnings growth. Aon expects accretion to adjusted EPS. Subject to certain conditions, the Aon and Willis Towers Watson deal is expected to close in the third quarter of the current year.

This all-stock merger of Aon and Willis Towers Watson will overtake Marsh & McLennan Companies Inc.MMC in terms of market capital. Aon and Willis Towers Watson have complementary businesses. Their advanced, technology-powered global platform is anticipated to provide data-driven insights for creating client value.

Underpenetrated areas like cyber, climate risk and delegated investments with client demands will be met with the expertise of both companies. The combined entity will cater to clients across risk, retirement and health businesses.

Insurance brokers have been looking for ways to fight the evolving challenges and boost their business portfolios. In this context, these strategic initiatives will be of great help. 

Time to Invest in Legal Marijuana

If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.

After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%

You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.

Today, Download Marijuana Moneymakers FREE >>
 


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report
 
Aon plc (AON) : Free Stock Analysis Report
 
Arthur J. Gallagher & Co. (AJG) : Free Stock Analysis Report
 
Willis Towers Watson Public Limited Company (WLTW) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting