CMA clears AJ Gallagher’s Willis Re deal

22-11-2021

CMA clears AJ Gallagher’s Willis Re deal

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The Competition and Markets Authority (CMA) has cleared Arthur J Gallagher’s planned purchase of Willis Re.

 The UK’s anti-trust regulator launched the investigation into the acquisition of Willis Towers Watson’s treaty reinsurance following the announcement of a deal in August for $3.25 billion plus an earnout payable in 2025 of up to $750 million in cash. That deal itself followed the collapse of an earlier agreement to acquire WTW assets following the failure of the proposed merger between Aon and WTW. 

 Following the August announcement, the CMA announced an investigation on October 5. 

 This stated: “The Competition and Markets Authority (CMA) considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services”.

 Invitation to comment on the deal closed on October 19.

 On Monday, the CMA announced it had cleared the anticipated acquisition, which can now go ahead. A full text of the decision will be available shortly, the CMA added.

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