GLOBAL - Aon Consulting and Hewitt Associates are to merge to form a new consultancy in a $4.9bn deal.
The agreement will see Aon Corporation merge Hewitt with its own consultancy business to form a new subsidiary named Aon Hewitt.
Aon has valued Hewitt at $50 per share, with the $4.9bn deal consisting of 50% cash and 50% Aon stock.
Hewitt chairman and chief executive officer Russ Fradin will serve as chairman and chief executive officer of Aon Hewitt, reporting to Aon Corporation chief executive officer Greg Case.
"This agreement reflects our ongoing efforts to ensure that Aon's associates, capabilities and technology remain at the forefront of our industry, providing distinctive client value," said Case.
"As we continue to grow our business, this merger will give us a broader portfolio of innovative products and services focused on what we believe are two of the most important topics in the global economy today - risk and people."
Case continued, "Aon and Hewitt share a focus on excellence in client service and recognize the importance of talent in our industry. A leading portfolio of client services and strong cultural fit will enable us to quickly realize the benefits of this transaction, and the value added for our clients, our associates and our stockholders."
Fradin added: "We are extremely excited to join forces with another iconic global brand to form the leading human capital services enterprise.
"This combination allows us to provide even more services for our clients and greater opportunities for our associates. Aon and Hewitt share a relentless commitment to our clients and to the associates who serve them."
This week's top stories included Cardano announcing plans to acquire Now Pensions from a Dutch pension fund later this year.
Royal Bank of Scotland (RBS) faces a £102m impact on liabilities as a result of equalising guaranteed minimum pensions (GMPs), according to its annual results.
Malcolm Mclean says getting the channels of communication right and engaging more openly is a good starting point