Willis Towers Watson will refund shareholders commission for canceling the deal with Aon, increasing the share buyback program by $ 1 billion
Global reinsurance broker Willis Towers Watson (WTW) has decided to return to shareholders the commission for ending the merger with Aon, increasing its share buyback program by $ 1 billion.
After news broke that Aon and WTW had decided to abandon their $ 30 billion mega-merger plans, Aon announced that he would pay WTW a $ 1 billion abandonment fee, which the broker appears to be returning to its stakeholders…
Under the existing WTW share buyback program, about $ 500 million remained in the current perpetual share buyback powers, and the company’s board of directors approved an increase of this existing program by $ 1 billion.
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The WTW Share Buyback Program has no termination date and may be suspended or terminated at any time. The company says it expects to use this permit in both 2021 and 2022.
The broker intends to use the significant capital generated from operating and non-operating cash flows to increase its investment in organic and inorganic growth opportunities over the next three years.
As a reminder, Aon and Willis Towers Watson have mutually agreed to terminate the business combination, ending one of the largest acquisition plans that could create a major global brokerage player.
The companies said the decision was made to end litigation with the US Department of Justice (DOJ). The $ 30 billion deal was first announced on March 9, 2020 and has gone through many stages of evaluation by various European authorities.
“Despite the regulatory momentum around the world, including the recent approval of our M&A deal by the European Commission, we are at an impasse with the US Department of Justice,” said Aon CEO Greg Keyes. “The position of the Ministry of Justice overlooks the fact that our complementary businesses operate in broad, competitive areas of the economy. We are confident that the merger would accelerate our overall ability to innovate on behalf of clients, but fail to ensure that our litigation is expedited by now. ”