DUBLIN, May 17, 2021
/PRNewswire/ -- Aon plc (NYSE: AON), a leading global
professional services firm providing a broad range of risk,
retirement and health solutions, today announced the firm has
signed a definitive agreement to sell its pensions consulting,
pension insurance broking, pensions administration and investment
consulting business in Germany to
Lane Clark & Peacock LLP
(LCP).
The agreement resolves questions raised by the European
Commission with respect to the markets in which these businesses
are active. Aon and Willis Towers
Watson continue to work toward obtaining additional
regulatory approval in all relevant jurisdictions, including
the United States, where
regulators are conducting an independent review of the proposed
combination.
"This agreement demonstrates further momentum on the path to
close our proposed combination with Willis
Towers Watson," said Greg
Case, Aon's CEO. "We recognize the significant contributions
these colleagues have made on behalf of our clients during their
time with Aon. LCP shares with us a culture of innovation and
excellence and we know these colleagues have a positive future at
LCP."
LCP is the leading independent, owner-managed pensions,
investment and insurance consultancy in the UK and Ireland. The acquisition builds on a period of
growth for LCP, which posted record income of £126.5 million during
FY 2019-2020, an increase of 10.1 percent driven by success across
a wide range of sectors. With a significant market share in
Germany, the acquisition gives LCP
a leading market position in this important market for pensions
consulting and related services.
"A key part of LCP's strategy is diversifying the business into
different markets with long-term growth potential," said
Aaron Punwani, LCP's CEO. "The
German pensions consulting market is the third largest in the
world, after the U.S. and the UK, which makes it a natural place
for LCP to achieve a leading position, mirroring what we have
achieved in the UK in recent years."
Punwani added, "We see a meeting of minds with the knowledgeable
and dynamic people who lead the business in Germany. We are truly excited about welcoming
this fantastic team as part of LCP and achieving great things
together for the benefit of our people and our clients."
The retirement and investment business LCP will acquire includes
350 colleagues across five offices in Germany and will be rebranded as LCP upon
close of the transaction. The transaction with LCP is contingent on
the completion of the pending Aon and Willis Towers Watson combination, as well as
other customary closing conditions.
ENDS
About Aon
Aon plc (NYSE: AON) is a leading global professional services
firm providing a broad range of risk, retirement and health
solutions. Our 50,000 colleagues in 120 countries empower
results for clients by using proprietary data and analytics to
deliver insights that reduce volatility and improve
performance.
Follow Aon on Twitter and LinkedIn
Stay up to date by visiting the Aon Newsroom and hear from Aon's
expert advisors in The One Brief.
Sign up for News Alerts here
About LCP
At LCP, our experts provide clear, concise
advice focused on your needs. We use innovative technology to give
you real time insight & control. Our experts work in pensions,
investment, insurance, energy, health and analytics.
Media Contacts
Aon - Nadine
Youssef, mediainquiries@aon.com, +1 833 751 8114
LCP - Lauren Keith,
Lauren.Keith@lcp.uk.com, +44 (0) 20 3922 1319
Statements Required by the Irish Takeover Rules
The
directors of Aon accept responsibility for the information
contained in this announcement. To the best of the knowledge and
belief of the directors of Aon (who have taken all reasonable care
to ensure that such is the case), the information contained in this
announcement for which they accept responsibility is in accordance
with the facts and does not omit anything likely to affect the
import of such information.
No statement in this announcement is intended to constitute a
profit forecast for any period, nor should any statements be
interpreted to mean that earnings or earnings per share will
necessarily match or be greater or lesser than those for the
relevant preceding financial periods for Aon as appropriate. No
statement in this announcement constitutes an asset valuation.
Safe Harbor Statement
This communication contains
certain statements related to future results, or states Aon's
intentions, beliefs and expectations or predictions for the future
which are forward-looking statements as that term is defined in the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially
from either historical or anticipated results depending on a
variety of factors. These forward-looking statements include
information about possible or assumed future results of Aon's
operations, the uncertainty surrounding the COVID-19 pandemic,
Aon's pending combination with Willis Towers Watson Public Limited
Company (the "Combination"), and divestitures to be made in
connection with the Combination. All statements other than
statements of historical facts that address activities, events or
developments that Aon expects or anticipates may occur in the
future, including such things as its outlook, future capital
expenditures, growth in commissions and fees, changes to the
composition or level of its revenues, cash flow and liquidity,
expected tax rates, business strategies, competitive strengths,
goals, the benefits of new initiatives, growth of its business and
operations, plans, references to future successes, and expectations
with respect to the timing, closing and benefits of the
Combination, including divestitures made in connection with the
Combination, are forward-looking statements.
Also, when Aon uses words such as "anticipate", "believe",
"estimate", "expect", "intend", "plan", "probably", "potential",
"looking forward", or similar expressions, it is making
forward-looking statements. The following factors, among others,
could cause actual results to differ from those set forth in or
anticipated by the forward-looking statements: general economic and
political conditions in different countries in which Aon does
business around the world, including the UK's withdrawal from the
European Union; changes in the competitive environment or damage to
Aon's reputation; fluctuations in exchange and interest rates that
could influence revenue and expenses; changes in global equity and
fixed income markets that could affect the return on invested
assets; changes in the funding status of Aon's various defined
benefit pension plans and the impact of any increased pension
funding resulting from those changes; the level of Aon's debt
limiting financial flexibility or increasing borrowing costs;
rating agency actions that could affect Aon's ability to borrow
funds; volatility in Aon's tax rate due to a variety of different
factors, including U.S. tax reform; changes in estimates or
assumptions on Aon's financial statements; limits on Aon's
subsidiaries to make dividend and other payments to Aon; the impact
of lawsuits and other contingent liabilities and loss contingencies
arising from errors and omissions and other claims against Aon; the
impact of, and potential challenges in complying with, legislation
and regulation in the jurisdictions in which Aon operates,
particularly given the global scope of Aon's businesses and the
possibility of conflicting regulatory requirements across
jurisdictions in which Aon does business; the impact of any
investigations brought by regulatory authorities in the U.S.,
Ireland, the UK and other
countries; the impact of any inquiries relating to compliance with
the U.S. Foreign Corrupt Practices Act and non-U.S. anti-corruption
laws and with U.S. and non-U.S. trade sanctions regimes; failure to
protect intellectual property rights or allegations that Aon
infringes on the intellectual property rights of others; the
effects of Irish law on Aon's operating flexibility and the
enforcement of judgments against Aon; the failure to retain and
attract qualified personnel, whether as a result of the
Combination, divestitures made in connection with the Combination
or otherwise; international risks associated with Aon's global
operations; the effects of natural or man-made disasters, including
the effects of COVID-19 and other health pandemics; the potential
of a system or network breach or disruption resulting in
operational interruption or improper disclosure of personal data;
Aon's ability to develop and implement new technology; the damage
to Aon's reputation among clients, markets or third parties; the
actions taken by third parties that perform aspects of Aon's
business operations and client services; the extent to which
Aon manages certain risks created in connection with the services,
including fiduciary and investments, consulting, and other advisory
services, among others, that Aon currently provides, or will
provide in the future, to clients; Aon's ability to continue, and
the costs and risks associated with, growing, developing and
integrating companies that it acquires or new lines of business;
changes in commercial property and casualty markets, commercial
premium rates or methods of compensation; changes in the health
care system or Aon's relationships with insurance carriers; Aon's
ability to implement initiatives intended to yield, and the ability
to achieve, cost savings; Aon's ability to realize the expected
benefits from its restructuring plan; the possibility that the
Combination, or divestitures made in connection with the
Combination, will not be consummated in the expected timeframe, or
at all; failure to obtain necessary regulatory approvals, to comply
with the requirements related to such approvals, or to satisfy any
of the other conditions to the Combination or divestitures made in
connection with the Combination; adverse effects on the market
price of Aon's securities and/or operating results for any reason,
including, without limitation, because of a failure to consummate
the Combination or the divestitures made in connection with the
Combination; the failure to realize the expected benefits of the
Combination (including anticipated revenue and growth synergies) in
the expected timeframe, or at all; the failure to effectively
integrate the combined businesses following the Combination;
significant transaction and integration costs or difficulties in
connection with the Combination, or divestitures made in connection
with the Combination, and or unknown or inestimable liabilities;
litigation associated with the Combination; the potential impact of
the consummation of the Combination and divestures made in
connection with the Combination on relationships, including with
suppliers, customers, employees and regulators; and general
economic, business and political conditions (including any
epidemic, pandemic or disease outbreak, including COVID-19) that
affect the combined company following the consummation of the
Combination.
Any or all of Aon's forward-looking statements may turn out to
be inaccurate, and there are no guarantees about Aon's
performance. The factors identified above are not exhaustive.
Aon and its subsidiaries operate in a dynamic business environment
in which new risks may emerge frequently. Accordingly, you should
not place undue reliance on forward-looking statements, which speak
only as of the dates on which they are made. In addition, results
for the year ended December 31, 2020
and the quarter ended March 31, 2021
are not necessarily indicative of results that may be expected for
any future period, particularly in light of the continuing effects
of the COVID-19 pandemic. Further information concerning Aon and
its businesses, including factors that potentially could materially
affect Aon's financial results, is contained in Aon's filings with
the Securities and Exchange Commission (the "SEC"). See Aon's Annual Report on Form 10-K for the
year ended December 31, 2020 and its
Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 for a further discussion of these
and other risks and uncertainties applicable to Aon and its
businesses. These factors may be revised or supplemented in
subsequent reports filed with the SEC. Aon is not under, and
expressly disclaims, any obligation to update or alter any
forward-looking statement that it may make from time to time,
whether as a result of new information, future events or
otherwise.
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SOURCE Aon plc