Risk management and consultancy firm Towers Watson is to merge with insurance and reinsurance broker Willis Group in a deal worth around $18bn (£11bn).
The merger was announced in a statement this morning. The enlarged company will bring together global advisory and broker services and will be named Willis Towers Watson.
Under the terms of the deal, Willis shareholders will own around 50.1 per cent of the combined business and Towers Watson shareholders will own around 49.9 per cent.
The merger has been approved by the board directors of both companies.
The combined company will have around 39,000 staff working in over 120 countries, and aims to deliver cost savings of between $100m and $125m.
Towers Watson chairman and chief executive John Haley will become chief executive of the enlarged group.
Dominic Casserley, who is chief executive of Willis, will become president and deputy chief executive.
The deal is expected to complete by 31 December, subject to regulatory and shareholder approval.
Haley says: “This is a tremendous combination of two highly compatible companies with complementary strategic priorities, product and service offerings, and geographies that we expect to deliver significant value for both sets of shareholders.”
Casserley says: “We look forward to bringing Towers Watson’s innovative solutions to our clients alongside our broking and advisory services. The opportunity to deliver significant savings to our growing middle market client base with Towers Watson’s private exchange platform is particularly attractive.”