British insurance broker Willis Group and US professional services firm Towers Watson announced plans to combine Tuesday, creating a company worth about $18 billion.
The companies said that the stock-swap merger would result in $120-$125 million in cost savings and boost both companies' client lists.
The combined company will be called Willis Towers Watson and will be domiciled for tax purposes in Ireland, resulting in lower taxes for Towers Watson.
Towers Watson shareholders will receive 2.6490 Willis shares for each Towers share, plus a one-time cash dividend of $4.87 per Towers share.
After the deal closes, Willis shareholders will own about 50.1 percent of the company, with Towers Watson owning the rest. Each company will nominate six members of the board of directors.
"At one stroke, the combination fast-tracks each company's growth strategy and offers a truly compelling value proposition to our clients," said Willis chief executive Domic Casserley.
"We will advise over 80 percent of the world's top-1000 companies, as well as having a significant presence with mid-market and smaller employers around the world."
Willis dates to 1828 and offers brokerage, reinsurance and risk management consultancy services, including specialized risk management services to the aerospace, energy and construction industries. It had revenues of $3.8 billion in 2014.
Towers Watson provides consultancy services to companies on employee benefits, talent management and risk and financial management. It reported $3.5 billion in revenues for last year.
In mid-morning trade, shares in Towers Watson dropped 2.3 percent to $134.82, while Willis rose 4.9 percent to $47.60.
GMT 22:53 2018 Thursday ,13 December
Indian Minister of Trade meets with UAE Ambassador, Chairman of Emaar PropertiesGMT 13:41 2018 Thursday ,06 December
Tyre maker Continental opens lab to extract rubber from dandelionsGMT 15:22 2018 Friday ,30 November
Paper industry around famous Chinese lake to be shut down by 2019GMT 11:13 2018 Sunday ,18 November
Electricx 2018 kicks off with participation of over 20 countriesGMT 14:17 2018 Thursday ,25 October
BP eyes entering several new Rosneft projectsGMT 12:08 2018 Saturday ,20 October
OPEC participants performed Vienna Agreement by 111%GMT 16:14 2018 Saturday ,06 October
Saudi Aramco IPO to go ahead by early 2021GMT 19:01 2018 Thursday ,04 October
LEAD S. Korean firms offer aid for quake-hit IndonesiaMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Send your comments
Your comment as a visitor