Aon plc - AON STOCK NEWS

Aon plc (NYSE: AON) and Willis Towers Watson (NASDAQ: WLTW) released a statement regarding the U.S. Department of Justice's legal action against their proposed merger. Both companies criticized the DOJ's stance, highlighting their belief that the merger will enhance innovation and provide better services to clients. They emphasized their ongoing progress with other global regulators and the strong performance of both firms post-announcement of the merger. Aon and WLTW remain committed to their combination despite the DOJ's challenges.

Entrinsic Bioscience has secured $49 million in non-dilutive growth capital from Jefferies Group to support its innovative platform for developing functional ingredients and active pharmaceutical ingredients (APIs). This financing builds on previous investments, including significant backing from Johnson & Johnson. The funding will accelerate commercialization efforts for products targeting gastrointestinal, airway, and skin conditions. Aon Plc facilitated the financing by providing key insurance and valuation support for Entrinsic's intellectual property.

Aon plc (NYSE: AON) has signed agreements to sell its U.S. retirement business to Aquiline for $1.4 billion and the Aon Retiree Health Exchange™ business to Alight. These moves aim to address regulatory concerns related to Aon’s combination with Willis Towers Watson. The divestitures are expected to enhance financial metrics, with projected $800 million in cost synergies. The U.S. retirement business includes approximately 1000 employees and core consulting services, with the completion subject to regulatory approvals.

Aon plc (NYSE: AON) has announced that it will donate 100% of its 2021 revenues from its new vaccine supply chain solution to the COVID-19 Solidarity Response Fund, committing a minimum of $100,000. This solution aims to enhance the distribution of COVID-19 vaccines by offering transparent cargo insurance and leveraging sensor data for maintaining temperature control during transport. The COVID-19 Solidarity Response Fund has distributed over $250 million to support WHO's efforts in combating the pandemic, including reducing transmission and mortality, and ensuring equitable access to vaccines.

Aon plc (NYSE: AON) has signed a definitive agreement to sell its pensions consulting, pension insurance broking, pensions administration, and investment consulting business in Germany to Lane Clark & Peacock LLP (LCP). This move addresses European Commission inquiries regarding market activities. Aon's CEO Greg Case highlighted this as progress towards closing the merger with Willis Towers Watson. LCP aims to enhance its market position in Germany, the world's third-largest pensions consulting market, by integrating Aon's team of 350 professionals from five German offices.

Aon has signed a definitive agreement to divest Willis Re and certain corporate risk and broking services to Arthur J. Gallagher for $3.57 billion. This transaction is a crucial step in Aon's proposed merger with Willis Towers Watson, aiming to resolve regulatory questions and expedite approval processes. Aon anticipates $800 million in cost synergies and believes the combination will drive revenue growth, margin expansion, and enhanced shareholder returns. Regulatory approvals are pending, but Aon aims to finalize the merger by Q3 2021.

Aon plc reported a strong First Quarter 2021, with total revenue rising by 10% to $3.5 billion, driven by 6% organic growth. Operating margin improved by 320 basis points to 35.3%. EPS increased by 22% to $4.00, and adjusted EPS rose by 16% to $4.28. Cash flows from operations surged 66% to $561 million, and free cash flow jumped by 91% to $532 million. The company repurchased 0.2 million Class A shares for about $50 million and announced an 11% increase in the quarterly cash dividend. Aon's strategies address challenges like COVID-19 and climate change while leveraging pending merger opportunities with Willis Towers Watson.

The Chicago Apprentice Network has reached a milestone of over 1,000 apprenticeships since its inception in August 2017. Founded by Aon, Accenture, and Zurich North America, the Network is designed to promote diverse talent pathways across various sectors. The organization now comprises over 50 employers from finance to technology. The progress will be highlighted at a virtual event attended by notable figures, including Senator Dick Durbin. Aon's investment of $30 million aims to create 10,000 apprenticeships nationally by 2030, enhancing workforce diversity and opportunity.