mast image

Special Report

Impact investing

Sections

Mercer parent company to buy JLT Group for $5.6bn

Related Categories

Marsh & McLennan Companies (MMC), the parent company to investment consulting giant Mercer, has announced a $5.6bn (€4.8bn) deal to acquire Jardine Lloyd Thompson Group.

JLT Group is one of Mercer’s main competitors in the pension scheme advisory market in the UK, and also provides insurance, reinsurance and brokerage services.

Dan Glaser, CEO and president of MMC, said in a statement to the stock market this morning that the two firms were a “complementary fit” and would create “a platform to deliver exceptional service to clients and opportunities for our colleagues”.

Dominic Burke, JLT Group’s chief executive, will join MMC as vice chairman following completion of the transaction. He said: “MMC is, and always has been, one of our most respected competitors and I believe that, combined, we will create a group that will truly stand as a beacon for our industry.”

<

In its statement, MMC said the purchase “accelerates MMC’s strategy to be the preeminent global firm in the areas of risk, strategy and people”. 

Investors in JLT – which is currently listed on the London Stock Exchange and is a constituent of the FTSE 250 index – will receive £19.15 a share in cash, representing a premium of 33.7% based on JLT’s closing share price on 17 September. JLT’s largest shareholder, Jardine Matheson Holdings, has already confirmed support for the deal, as have JLT directors.

The transaction has also been aided by a $5.2bn bridging loan provided by Goldman Sachs.

MMC estimated that integrating the company into its structure would cost $375m, but generate annual cost savings of $250m over the next three years.

The deal is expected to complete in the spring of next year, subject to regulatory approval.

Investment consultants and fiduciary managers in the UK are currently the subject of an inquiry by the Competition and Markets Authority.

Related images

  • Governance at UK pension schemes 'not fit for purpose'

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2558

    Asset class: Private Equity.
    Asset region: Global or Swiss.
    Size: USD $5-10m.
    Closing date: 2019-08-20.

  • QN-2559

    Asset class: Multi Assets.
    Asset region: -.
    Size: EUR 15m (may be split into two mandates EUR 7.5m).
    Closing date: 2019-09-06.

  • QN-2560

    Asset class: Private Equity.
    Asset region: Global.
    Size: $40m.
    Closing date: 2019-08-30.

  • QN-2561

    Asset class: Infrastructure.
    Asset region: Global.
    Size: $40m.
    Closing date: 2019-08-30.

Begin Your Search Here
<