Marsh & McLennan, the parent company of Mercer, the world’s largest consulting firm, will buy its rival, Jardine Lloyd Thompson (JLT), for $5.7 billion.
The deal gives Marsh & McLennan a larger take of the UK pension advisory market, and also expands its insurance, reinsurance, and brokerage services in the region.
Dominic Burke, JLT’s chief, said Marsh initiated talks and put together a quick deal, which was first discussed on September 7. He will become Marsh & McLennan’s vice chairman as well as serve on its executive committee.
“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,” he said.
Common stockholders of JLT will receive £19.15 per share, which represents a 33.7% premium based on the firm’s September 17 closing price. Jardine Matheson Holdings, its largest shareholder, has supported the deal, as have JLT directors.
Goldman Sachs has provided a $5.2 billion bridge loan to aid the transaction.
The deal is expected to close next spring.