ROLLING MEADOWS, Ill:
Following termination of a $39 billion merger aggrement between Aon and Wills Tower Watson on Monday, Arthur J. Gallagher & Co has also announced the termination of its May 12, 2021 agreement to acquire certain Willis Towers Watson plc brokerage operations as a result of Aon plc and Willis Towers Watson plc terminating their combination agreement.
The two brokers had an agreement in May to sell certain parts of Willis’ reinsurance, specialty and retail brokerage operations to Gallagher for a gross consideration of $3.57 billion – contingent on the Aon-Willis merger clearing, as well as the completion of other customary closing conditions.
In conjunction with the termination announcement, Gallagher plans to exercise the special optional redemption feature of its $650 million tranche of 10-year senior notes issued on May 20, 2021.
Additionally, Gallagher is evaluating opportunities to deploy its excess cash position through its merger program as well as possible share repurchases.
The company plans to provide further updates on its second quarter 2021 earnings call on July 29, 2021 after the market close.