Aon withdraws NZ application for WTW acquisition

Aon withdraws NZ application for WTW acquisition | Insurance Business New Zealand

Aon withdraws NZ application for WTW acquisition

Aon has formally withdrawn its application with the New Zealand Commerce Commission regarding its aborted acquisition of fellow global broker Willis Towers Watson.

The Commerce Commission was scheduled to release its decision on the transaction on August 20, but it has been made moot after the deal collapsed on June 26.

Both firms provide a range of broking services, including for commercial risk, reinsurance, group health and welfare benefits, and personal and life insurance, in New Zealand. Both also provide investment consulting services to institutional investors.

Aon sought approval for the transaction, which would make Willis Towers Watson its wholly owned subsidiary.

According to the commission, it will give clearance to a proposed merger if it is satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market. The US Department of Justice believed that the Aon-WTW merger would be harmful to competition and detrimental to American clients, which led to it filing a civil antitrust lawsuit. This led to the companies cancelling the deal.