Towers Watson merge in £11bn deal
Towers Watson has today (30 June) announced a merger with Willis Group to create a global advisory, broking and solutions firm called Willis Towers Watson.
The definitive merger agreement, based on the closing prices of Willis and Towers Watson stock yesterday (29 June), marks the equity value of the transaction at approximately $18bn (£11.4bn).
Upon completion of the deal, shareholders in Willis will own approximately 50.1 per cent and shareholders in Towers Watson will own approximately 49.9 per cent of the combined company on a fully diluted basis.
The companies said in a statement released today that the combined company will have approximately 39,000 employees in over 120 countries.
This transaction has been unanimously approved by the board of directors of each company.
John Haley, chief executive and chairman of Towers Watson, has said that this is a “tremendous combination of two highly compatible companies with complementary strategic priorities”.
He said: “We see numerous opportunities to enhance our growth profile by offering integrated solutions that leverage Willis’ global distribution network and superb risk advisory and re/insurance broking capabilities to deliver a more robust set of analytics and product solutions across a broader client base, including accelerating penetration of our exchange solutions platform into the fast growing middle-market.”
Dominic Casserley, Willis Group’s chief executive, added: “These are two companies with world-class brands and shared values.
“The rationale for the merger is powerful – at one stroke, the combination fast-tracks each company’s growth strategy and offers a truly compelling value proposition to our clients.
“Together we will help our clients achieve superior performance through effective risk, people and financial management.”
ruth.gillbe@ft.com
