Aon’s $13.4B Acquisition of NFP Clears Regulatory Hurdle

Aon plc and U.S. middle market property/casualty broker NFP Corp. cleared a regulatory hurdle in Aon's proposed $13.4 billion acquisition of NFP as a waiting period expired under the U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Source: AM Best | Published on February 22, 2024

Aon-NFP acquisition

Aon plc and U.S. middle market property/casualty broker NFP Corp. cleared a regulatory hurdle in Aon’s proposed $13.4 billion acquisition of NFP as a waiting period expired under the U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976. The transaction is expected to close in mid-2024. Until closing, Aon and NFP will continue to operate independently, the companies said in a joint statement.

The Hart-Scott-Rodino Act requires companies to file pre-merger notifications with the Federal Trade Commission and the Antitrust Division of the Justice Department for certain acquisitions and establishes waiting periods until the companies provide certain additional information about the likelihood that the proposed transaction would substantially lessen competition.

Aon will provide updates on key financial metrics, as appropriate, at the time of close, the companies said.

The transaction remains subject to the receipt of other applicable regulatory approvals and customary closing conditions.

Aon’s proposed acquisition of NFP will drive both organic and inorganic growth in a fast-growing U.S. property/casualty middle market and strengthen Aon’s presence in high-growth lines of business, said Aon’s chief executive officer.

As an established risk, health and wealth broker, NFP provides access to a large middle market of more than $30 billion with strong organic and inorganic growth prospects, CEO Greg Case said earlier. NFP’s distribution capability is particularly strong in the United States, he said.

Both Aon and NFP see increasing impacts from volatility for their clients, particularly in supply chains, cyberrisks, climate and property risks, medical cost inflation and talent, and they need help to face these challenges, Case said.

NFP will be acquired from funds affiliated with NFP’s main capital sponsor, private equity firm Madison Dearborn Partners, and funds affiliated with HPS Investment Partners, Aon said in a statement. The acquisition will comprise $7 billion in cash and $6.4 billion of Aon stock.

Doug Hammond, chairman and CEO of NFP, will continue to lead the business as an independent but connected platform within Aon, reporting to Aon President Eric Andersen.

Are you retail Agent Looking for a Quote?