Aon is to sell its retirement and investment business in Germany to UK-based consultancy LCP, a move intended to help facilitate the completion of Aon’s merger with Willis Towers Watson (WTW).
Announcing the agreement today, Aon said it resolved questions raised by the European Commission.
“This agreement demonstrates further momentum on the path to close our proposed combination with Willis Towers Watson,” said Greg Case, chief executive officer of Aon.
“We recognise 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.”
The acquisition is set to make LCP one of the largest pensions consultancy firms in Germany, with LCP to acquire 350 Aon staff across five offices in Germany.
The business will be rebranded as LCP upon completion, which is contingent on the completion of the pending Aon-WTW combination.
“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 US 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.”
Last week Aon and WTW announced they had signed a definitive agreement to sell Willis Re and a set of WTW corporate risk and brokering and other services to Arthur J Gallagher & Co., a US-headquartered firm.
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