Aon Agrees to a $30 Billion Deal To Buy Willis Towers Watson

The US-based insurance giant Aon (NYSE:AON) has agreed to a deal to purchase Willis Towers Watson (NASDAQ:WLTW) in a deal worth almost $30 billion. The combined company has an implied combined equity value of approximately $80 billion.

The all-stock deal will create the world’s largest insurance broker as these two are ranked second and third biggest insurance names in the business.

In case the deal falls through, Aon will be forced to pay $1 billion to Willis, under terms of the agreement. The offer, accepted by Willis, is at a premium of 16% to Willis’s closing price on Friday.

If the deal goes through, Aon shareholders will own around 63% of the combined company, compared to about 37% of shares belonging to the current Willis Towers Watson shareholders.

Last year, Aon communicated that it was engaged in talks to buy Willis but the deal fell through. At that point in time, some analysts argued that the two companies will have issues clearing antitrust hurdles.

Shares of AON trade 2.56% higher today in New York, while the Willis Towers Watson stock price is up by 2.93%.