Aon plc has reached a definitive agreement to buy Willis Towers Watson announced Aon on March 9. The all equity transaction is valued at $30 billion.

The combined equity value of the merged companies will be approximately $80 billion. It will be the world’s largest insurance brokerage, surpassing Marsh & McLennan Companies.

"This combination will create a more innovative platform capable of delivering better outcomes for all stakeholders, including clients, colleagues, partners and investors," said Aon CEO Greg Case. "Our world-class expertise across risk, retirement and health will accelerate the creation of new solutions that more efficiently match capital with unmet client needs in high-growth areas like cyber, delegated investments, intellectual property, climate risk and health solutions."

Aon says the deal “is expected to generate more than $10 billion in shareholder value creation. The combined company will be named Aon and will maintain operating headquarters in London, United Kingdom.

John Haley, CEO of Willis Towers Watson, will take on the role of Executive Chairman with a focus on growth and innovation strategy, says Aon. The combined firm will be led by Greg Case and Aon Chief Financial Officer Christa Davies. The Board of Directors will comprise proportional members from Aon and Willis Towers Watson's current directors.

Aon anticipates that the transaction will provide annual pre-tax synergies and other cost reductions of $800 million by the third full year of combination.

The transaction is subject to the approval of the shareholders of both Aon Ireland and Willis Towers Watson, as well as other customary closing conditions, including required regulatory approvals. Aon says the parties expect the transaction to close in the first half of 2021, subject to satisfaction of these conditions.