Aon abandons Willis merger
Aon has scrapped plans to pursue a merger with rival insurance brokerage Willis Towers Watson.
It comes a day after it revealed it was in early stages of considering an all-stock offer for the Irish-domiciled company. Aon's shares rose 6.19pc in early trading, recouping some of the losses incurred on Tuesday after news of the potential merger surfaced. The company did not give any reason for abandoning the deal.
An Aon-Willis merger would have been the largest deal in the US insurance industry, which is consolidating in the face of uncertainty arising from Britain's impending exit from the European Union and trade tensions between the United States and China.
Shares of Willis Towers hit an all-time high of 8.6pc on Tuesday after a Bloomberg report said the companies were in preliminary talks. Aon's shares fell nearly 8pc. Shares of Willis Towers were down 5.24pc at $172.50 in the premarket trading yesterday.