The Competition and Consumer Commission of Singapore (CCCS) has identified areas for further review in the Aon-Willis merger, as the broking companies face legal action from the US Department of Justice (DOJ).
Following receipt of a notification from Aon for a decision on the proposed merger, the CCCS commenced a public consultation on the deal on April 9, 2021.
Specifically, the CCCS explored whether the combination of Aon and Willis (WTW) would infringe section 54 of the Competition Act (Cap. 50B), “which prohibits mergers that have resulted, or may be expected to result, in a substantial lessening of competition within any market in Singapore.”
The CCCS noted that, back in April, Aon informed in relation to the supply of retirement benefits consulting services and human capital consulting services, two areas in which Aon and WTW overlap in supplying services.
“Based on information furnished by Aon and feedback from third parties, CCCS has identified areas for further review in respect of the Proposed Transaction, pertaining to executive compensation and related consulting services, as a sub-segment under human capital consulting services,” explained the CCCS.
Ultimately, feedback from third parties suggested to the CCCS that once merged, the new entity will be the largest provider of executive compensation and related consulting services in Singapore, with limited alternative providers available to compete effectively.
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