Aon has agreed to offload its pensions consulting, pension insurance broking, pensions administration and investment consulting business in Germany to Lane Clark & Peacock (LCP).
The agreement resolves concerns raised by the European Commission regarding the combination of Aon and Willis Towers Watson (WTW).
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By GlobalDataThe acquired entity has five offices in Germany and a staff headcount of 350.
Following completion of the deal, the business will be rebranded as LCP.
The deal, whose financial terms were not disclosed, is subject to the merger of Aon and Willis Towers Watson and other customary closing conditions.
LCP CEO Aaron Punwani said: “A key part of LCP’s strategy is diversifying the business into different markets with long-term growth potential.
“The German pensions consulting market is the third largest in the world, after the U.S. and the UK, which makes it a natural place for LCP to achieve a leading position, mirroring what we have achieved in the UK in recent years.”
Recently, Aon and WTW agreed to sell Willis Re and certain WTW corporate risk and broking and health and benefits services to Arthur J. Gallagher for $3.57bn to gain regulatory clearance in Europe for their merger.
Aon CEO Greg Case said: “We recognise the significant contributions these colleagues have made on behalf of our clients during their time with Aon.
“LCP shares with us a culture of innovation and excellence and we know these colleagues have a positive future at LCP.”
Aon and WTW inked a definitive agreement last March to combine operations in an all-stock transaction. The proposed $30bn merger deal was cleared by shareholders in August 2020.
The European Commission launched an in-depth probe last December to evaluate the proposed acquisition of Willis Towers Watson by Aon, under the EU Merger Regulation.
The investigation followed the commission’s concern that the proposed deal could cut down competition.