AON ‘SEES VALUE CREATION’ IN AS MUCH OF WTW AS IT CAN BUY

Aon has “very credible” expectations it could create value out of its $30bn merger deal with Willis Towers Watson regardless of how much regulators demand it divest component businesses, analysts said. Media reports have suggested the US Department of Justice (DoJ) wants Willis Towers Watson to sell its San Francisco, Houston and Bermuda brokerage business (with revenues of around $100m) to approve the takeover. It is understood Aon has proven very willing to make those concessions. “We think Aon’s reported willingness to comply [with the DoJ] reflects very credible expectations of value creation at as much of Willis Towers Watson as it can buy,” Keefe, Bruyette & Woods analyst Meyer Shields said. He added that Aon seems keen “to complete even a partial deal as quickly as possible”.