Aon Plc’s Willis Tower takeover slips into US Justice Dept. cross hair amid lawsuit

by   |  VIEW 2372

Aon Plc’s Willis Tower takeover slips into US Justice Dept. cross hair amid lawsuit

The US Justice Department had filed a lawsuit late on Wednesday in a bid to prevent the UK-based insurance broker Aon Plc’s $30-billion takeover of Anglo-American insurer Willis Towers Watson citing that the deal in effect could turn down competition and yield higher prices.

However, as a Trump-nominated judge would be hearing the US Justice Department’s fight to stop Aon’s purchase of Willis Towers, the legal tussle could turn in favour of Aon Plc., suggested analysts. In factuality, the London-based insurance broker Aon Plc.’s acquisition of Willis Towers would have merged the world’s second- and third-largest insurance brokers.

US Justice Department files lawsuit to prevent Aon’s Willis Tower takeover

The US Justice Department, in tandem, had said in the complaint lodged in a US District Court for the District of Columbia that a potential merger between Aon and Willis Tower would jeopardize at least five facades of consumers’ interests including inappropriate plans for health benefits, properties and casualties for big customers alongside a higher financial risk for large customers.

Nevertheless, in an inevitable repercussion, adding that the top-tier insurance brokers had disagreed with the Justice Department, Aon and Willis Towers said in a joint statement following the lawsuit, “The Justice Department’s action reflects a lack of understanding of our business, the clients we serve and the marketplaces in which we operate.

We continue to make material progress with other regulators around the world and remain fully committed to the benefits of our combination. Aon Plc had shrugged some of its assets such as private equity firm Aquiline Capital Partners alongside tech firm Alight for $1.4 billion earlier this month aimed at obtaining a US anti-trust nod, however the Justice Department had called the divestitures insufficient.

Besides, Aon’s $30 billion acquisition of Willis Tower, which would have made it the world’s largest insurance broker, had also been hit with a EU antitrust hurdle in April this year.