Marsh McLennan Acquisition of JLT Clears Key U.S. Antitrust Hurdle

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The Federal Trade Commission (FTC) and Justice Department have concluded their competitive review of the proposed acquisition of London-based re/insurance broker Jardine Lloyd Thompson Group (JLT) by New York-headquartered Marsh & McLennan Companies (MMC) and granted permission for the transaction to proceed.

On Oct. 10, the FTC granted an early termination of the waiting period under the Hart-Scott-Rodino anti-trust act for the deal.

The acquisition remains subject to additional antitrust and regulatory approvals as well as the approval of JLT shareholders. There will be a meeting of JLT shareholders on Nov. 7 in London for the purpose of obtaining shareholder approval.

On Sept. 18, MMC agreed to buy JLT for about 4.3 billion pounds ($5.6 billion) to expand its global offering of reinsurance and consulting services. MMC agreed to give JLT shareholders, including Jaardine Matheson Holdings that owns 40 percent, 19.15 pounds-a-share ($25.11M), which is a 34 percent premium to JLT’s closing price on Sept.17 and 25 times JLT’s estimated 2019 earnings.

The $5.6 billion deal, which was hammered out in about 11 days between MMC CEO Dan Glaser and JLT Group CEO Dominic Burke, looks to b one of the largest ever involving insurance brokers. Last year, KKR & Co. and Canada’s Caisse de Depot et Placement du Quebec acquired USI Insurance Services for $4.3 billion.

MMC said it aims to become the world’s leading company offering advice on risk, strategy and personnel. The purchase of JLT will strengthen MMC’s specialty risk broking, expand its global reinsurance network and enhance its position in Asia and Latin America, the firm said.

MMC’s revenues will be an estimated $17 billion as a result of the acquisition.

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Topics Mergers & Acquisitions USA

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