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The US will issue an order banning the acquisition of Aon $ 30bn by Willis

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The U.S. government has ordered a ban on the seizure of Willis Towers Watson’s Aon, threatening a $ 30bn sale its goal is to make the largest insurance company in the world.

The Department of Justice said in a statement Wednesday that the merger “tackles intense head-to-head competition and could lead to higher prices and minor changes, damaging American businesses and their customers, co-workers, and retirees”.

Together with Marsh McLennan, Aon and Willis form the three that “dominate the insurance competition selling the largest companies in the United States, almost all of which are at least one of their clients”, DoJ said.

The three executives have a pattern that small businesses can’t repeat, such as global operations, better information and analytics, and a “business differentiation strategy” for risk managers at large companies that were buying insurance, DoJ said. In terms of health benefits, they have been able to create bespoke products for large multidisciplinary clients.

The merger “will also transform the three major ones into two major ones”, and ally Aon-Willis will “use the opportunity on American businesses”, the protesters said.

The company’s share was down from daytime sales in New York, while Aon was down 3% and Willis was down 7%.

Global exports are facing regional regulatory systems, most notably the US and the EU. In the sale of commercial insurance, Aon and Willis own a 40% share in other critical insurance markets such as property damage, the hardships of others and financial risk.

DoJ’s complaint cites Aon’s chief vendor who allegedly told his colleagues that the company has “more opportunities than we think and we will have more [the] Willis’ contract is closed. . . We work in an oligopoly that everyone does not understand. “

“What has happened today demonstrates the commitment of the Department of Justice to stop the integration and maintain competition that directly benefits Americans across the country,” said Merrick Garland, the US attorney general.

The deadline for the extension of the agreement has already been reduced from the first half of 2021 to the third quarter, as the management process continues.

Last month, Aon and Willis agreed to a download $ 3.6bn Valuable assets, including Willis Re, to his rival Gallagher, in an attempt to eliminate European rival regulators.

Aon said the agreement resolved issues raised by the European Commission “and seeks to answer further questions raised by regulators in other regions”.

Aon reunited earlier this month to sell his retirement business to the U.S. at Aquiline Capital Partners in New York, and his work at the Aon Retiree Health Exchange in Alight – which Aon said “his aim is to answer some questions asked by the U.S. Department of Justice. “.

The DoJ said in a statement that the complaints were not enough to resolve their concerns. In the sale of goods, money laundering and the loss of major US customers, as well as health benefits, the products offered by these groups “do not come close to eliminating competition that may be lost due to mergers”.

Aon did not immediately respond to a request for comment. Willis Towers Watson declined to comment.

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