(Reuters) – Insurance brokers Aon PLC and Willis Towers Watson PLC said on Monday that they had agreed to terminate their $ 30 billion merger agreement and end their disputes with the US Department of Justice.
The deal would have put Aon ahead. by the world's largest insurance broker Marsh & McLennan Cos Inc.
"Despite regulatory action around the world, including the European Commission's recent approval of our combination, we reached a dead end with the US Department of Justice," Aon CEO Greg Case said in a statement.
Aon will pay $ 1 billion as a termination fee to Willis, it said.
In June, the Ministry of Justice had voted to block the deal, saying it would reduce competition and could lead to
the DOJ had argued that a combination of the two major insurance brokers would harm competition in reinsurance brokers, pension planning and pension planning and private pensioners with multicarrier healthcare exchanges.
A federation judge had limited the scope of the trial last week, which came after Aon and Willis agreed on divestments to gain approval in the United States and Europe after discussions with regulators.
The divestments included Aon's US pension fund, US exchange health care and a pension in Germany. Also included is Willis Towers Watson's global reinsurance business. EU antitrust regulators approved the merger earlier this month, subject to part of the sale.
Aon ranks second and Willis fifth among US commercial retail insurance brokers in the US market, according to a survey by the magazine Business Insurance
The other largest retail brokers in the US are Marsh & McLennan, Arthur J Gallagher & Co. and Alliant Insurance Services Inc.
In April, insurance company Chubb Ltd. said. that one no longer looked at buying less. rival, Hartford Financial Services Group Inc., after the latter rejected Chubb's takeover after sinking to participate in talks on $ 23.24 billion pre-purchase proposals. Aon's shares rose 4% to $ 242, while Willis Towers' stock fell 3.5% to $ 21