Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Aon Jumps 6%, Willis Towers Slumps On Scrapping Merger Plan

Published 07/26/2021, 09:57 AM
Updated 07/26/2021, 10:00 AM
© Reuters.

By Dhirendra Tripathi

Investing.com – Aon (NYSE:AON) stock jumped 6% and Willis Towers Watson (NASDAQ:WLTW) fell by as much Monday following a mutual decision between the two companies to call off their proposed $30 billion merger.

The combination would have been the world’s largest insurance broker, but the deal ran afoul of the U.S. Department of Justice, which argued that it would reduce competition and lead to higher prices.

The companies said they would end their litigation with Justice.  Aon would pay a $1 billion in termination fee to Willis. The two will now move ahead with their independent plans.

". . .We are confident that the combination would have accelerated our shared ability to innovate on behalf of clients, but the inability to secure an expedited resolution of the litigation brought us to this point," Aon CEO Greg Case said in a note.

The deal was first announced on March 9 last year.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.