Arthur J. Gallagher’s proposed acquisition of certain operations of Willis Towers Watson (WTW) is being investigated by UK’s Competition and Markets Authority (CMA).
The CMA said: “The CMA is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”
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In May this year, Aon and WTW agreed to offload 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.
However, the deal did not materialise because Aon and WTW terminated their proposed $30bn merger agreement.
In August this year, Arthur J. Gallagher agreed to purchase the treaty reinsurance brokerage operations of WTW for $3.25bn, which is being investigated by the CMA.
As per the terms of the agreement, the initial deal value of $3.25bn could rise by $750m to $4bn.
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By GlobalDataThe authority has also invited comments on the transaction from any interested party to assist it in assessing the situation.
Recently, American insurance broker Arthur J. Gallagher acquired Louisiana-based Files Agribusiness for an undisclosed sum.
