FIGHTING DOJ COULD BE ‘DISASTROUS’ FOR AON-WILLIS MERGER

A legal battle with the US Department of Justice (DoJ) could derail Aon and Willis Towers Watson's plans to complete their $30bn merger by the third quarter of this year, a top insurance lawyer has warned. Speaking to Insurance Day, the insurance partner at a London law firm said Aon and WTW are less likely to have leverage in future negotiations with the US after the lawsuit, given taking this case to trial “would be absolutely disastrous” and could continue for years. In addition to fighting the DoJ, Aon and WTW could offer more divestitures, similarly to those they have made in other jurisdictions, Wells Fargo analysts said. Alternatively, they could back away from the deal, in which case Aon would have to pay Willis Towers Watson a $1bn break-up fee. KBW analyst Meyer Shields said additional divestitures are more likely than Aon abandoning the deal.