Marsh has agreed a $5.6 billion (£4.26 billion) deal to buy Jardine Lloyd Thompson (JLT) Group.
The deal prices JLT’s shares at £19.15 each. Marsh said the transaction will be funded by a combination of cash and proceeds from debt financing, including bridge financing from Goldman Sachs.
The £19.15 that Marsh will pay per JLT share represents a 33.7% premium on the 17 September closing price of £14.32.
The deal for the insurance, reinsurance and brokerage provider, which is subject to regulatory approvals, is expected to close in early 2019.
Following completion of the acquisition, Dominic Burke, group chief executive of JLT, will join Marsh as vice chairman and serve as a member of its executive committee.
Dan Glaser, president and chief executive officer of Marsh, said of the deal: “The acquisition of Jardine Lloyd Thompson creates a compelling value proposition for our clients, our colleagues and our shareholders. The complementary fit between our companies creates a platform to deliver exceptional service to clients and opportunities for our colleagues.”
“On a personal level, I have come to know, and respect, Dominic Burke and his management team from my time both at MMC and as an underwriter. I am confident that with the addition of the talented colleagues of JLT, Marsh & McLennan will be an even stronger and more dynamic company.”
Burke said “I am enormously proud of what JLT has achieved, founded on our people, our culture and our unwavering commitment to our clients. MMC [Marsh & Mclennan] 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.”