Aon has announced that it has signed a definitive agreement to sell its retirement and investment business in Germany.
Aon will sell its pensions consulting, pension insurance broking, pensions administration and investment consulting business in Germany to Lane Clark & Peacock (LCP). The sale will resolve questions raised by the European Commission related to the merger of Aon and Willis Towers Watson, which will create the world’s largest insurance broker.
“This agreement demonstrates further momentum on the path to close our proposed combination with Willis Towers Watson,” said Aon CEO Greg Case. “We recognize 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.”
LCP is an independent, owner-managed pension, investment and insurance consultancy based in the UK. The acquisition builds on a period of growth for the company, which posted record income of £126.5 million during FY 2019-2020. LCP has a significant market share in Germany, and the acquisition will give the company a leading market position in the country.
“A key part of LCP’s strategy is diversifying the business into different markets with long-term growth potential,” said LCP CEO Aaron Punwani. “The German pensions consulting market is the third largest in the world, after the US 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. We see a meeting of the minds with the knowledgeable and dynamic people who lead the business in Germany. We are truly excited about welcoming this fantastic team as part of LCP and achieving great things together for the benefit of our people and our clients.”
The business LCP will acquire includes 350 employees across five offices in Germany, and will be rebranded as LCP once the transaction closes. The transaction with LCP is contingent upon the completion of the Aon-WTW merger, as well as customary closing conditions.