Aon’s proposed $13.4 billion acquisition of NFP passed a regulatory waiting period Feb. 21, the companies said.
While the acquisition is still subject to other regulatory and closing conditions, it has cleared the 30-day waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, which required the companies to report the transaction to the Federal Trade Commission and the U.S. Department of Justice Antitrust Division for antitrust review.
A joint statement from Aon and NFP said the transaction is on track to close in mid-2024, and the brokers will continue to operate independently until the deal is closed. The purchase price is to be funded by $7 billion in cash and $6.4 billion of Aon stock.
Since the brokers are different sizes and operate in different market segments, the deal was not expected to draw the same scrutiny from the DOJ, which blocked Aon’s proposed acquisition of Willis Towers Watson in 2021.
According to its website, New York-based NFP in 2022 had P/C revenue of $738 million as well as $1.1 billion in revenue from benefits and life, and $362 million in revenue from its wealth and retirement business. About 88 percent of revenue comes from the U.S. NFP ranked No. 10 in Insurance Journal‘s 2023 Top 100 P/C Agencies list based on P/C revenue.
When the deal closes, broker Aon will continue to be the second largest behind Marsh.
Aon said NFP chief executive Doug Hammond will continue to lead NFP, a leader in the middle-market segment, as an independent but connected platform within Aon under the brand “NFP, an Aon company.”