Willis Group, the third-largest insurance broker, agreed to merge with Towers Watson & Co. to add consulting operations and help take on larger US rivals.
Shareholders of the broker will own 50.1 percent of the combined company, which will be domiciled in Ireland, lowering taxes for US-based Towers Watson. Investors of the consulting company will get 2.649 Willis shares and a one-time cash dividend of $4.87 for each share they own, the companies said Tuesday. Based on the broker’s closing price Monday, the deal values Towers Watson at about $8.7 billion.
Marsh & McLennan and Aon the two largest brokers, also offer consulting services to tighten relationships with commercial clients who are seeking to manage employee benefits as well as buy insurance. Aon expanded in 2010 with the purchase of Hewitt LLC.
Full content: The New York Times
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