FILE PHOTO: An office building with Aon logo is seen amidst the easing of the coronavirus disease (COVID-19) restrictions in the Central Business District of Sydney, Australia, June 3, 2020. REUTERS/Loren Elliott
June 16, 2021
WASHINGTON (Reuters) -The Justice Department said on Wednesday it would sue to stop insurance broker Aon’s $30 billion acquisition of Willis Towers Watson.
The deal would combine two of the “Big Three” global insurance brokers, the department said. The third is Marsh McLennan.
Aon and Willis put together insurance contracts for clients that involve a number of insurance providers, for coverage ranging from airlines to large sporting events.
The Justice Department complaint cites an unnamed Aon executive who told colleagues, “We have more leverage than we think we do and will have even more when (the) Willis deal is closed. …. We operate in an oligopoly which not everyone understands.”
The companies proposed divestitures to resolve U.S. antitrust concerns but they were insufficient, the department said.
“American companies and consumers rely on competition between Aon and Willis Towers Watson to lower prices for crucial services, such as health and retirement benefits consulting,” said Attorney General Merrick Garland.
“Allowing Aon and Willis Towers Watson to merge would reduce that vital competition and leave American customers with fewer choices, higher prices, and lower quality services.”
(Reporting by Diane Bartz; Editing by Richard Chang)
