Leading Proxy Advisory Firms Recommend Shareholders Approve Aon, WTW Merger

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Aon plc and Willis Towers Watson announced that two leading proxy advisory firms have recommended that shareholders vote in favor of the companies’ proposed combination.

Institutional Shareholder Services Inc. (ISS) said the strategic rationale of the merger is sound. AON and WTW “have complementary businesses and client bases across geographies and client segments, which may provide the potential for revenue upside,” ISS said in an Aug. 7 report.

“We find the proposed merger is strategically and financially compelling and structured in a reasonable manner which impacts an acceptable valuation and ownership split for WLTW shareholders,” said Glass Lewis & Co., in a report published on Aug. 10, 2020.

As shareholder advisory firms, ISS and Glass Lewis, examine proxy proposals and suggest how shareholders should vote.

The extraordinary general meetings of the shareholders of both Aon and Willis Towers Watson are scheduled to take place on Aug. 26, 2020, when the vote will be held.

The merger was first announced in early March when the brokers announced an agreement to combine in an all-stock transaction with an implied combined equity value of approximately $80 billion.

Upon the closing of the deal, Willis Towers Watson shareholders will receive 1.08 Aon shares in exchange for each Willis Towers Watson share they held immediately prior to the closing. The deal is expected to close in the first half of 2021.

Source: Aon