The UK competition regulator announced on Tuesday that it is investigating the ongoing acquisition of Willis Towers Watson PLC's reinsurance business by Arthur J. Gallagher & Co.
In a statement, the UK Competition and Marketing Authority said. it considers whether the acquisition would result in "a significant reduction in competition within any market or markets in the United Kingdom for goods or services."
Gallagher said in a statement that the CMA's announcement was "a standard part of the process for all significant acquisitions." Willis declined to comment.
When the latest deal was announced in August, Gallagher said it was expected to close in the fourth quarter. According to the agreement, Gallagher said it would acquire the Willis Re agreement for an initial payment of $ 3.25 billion and possibly pay an additional $ 750 million, subject to third-year revenue targets.
Gallagher agreed in August to purchase Willis' treaty for reinsurance business less than a month after a deal for Rolling Meadows, an Illinois-based broker to buy a larger share of Willis' $ 3.57 billion business, collapsed.
The original deal had depended on Aon PLC's much major proposed acquisition of Willis, which was completed in opposition to government opposition.
CMA has invited comments on the latest transaction n as part of its first review process (Phase 1
The CMA will announce if it refers to the planned merger for a Phase 2 investigation by 29 November. Catalog