Aon to acquire Benfield

by Richard Kilner

Story link: Aon to acquire Benfield

Aon Corporation has reached a definitive agreement with Benfield Group limited whereby Aon will acquire Benfield for £3.50 per share.

The deal adds a 29% premium to Benfield’s share price, as of 21 August and is contingent upon approval by Benfield’s shareholders and regulators.

In addition, Aon will take on its acquisition’s debt of £91m.

Benfield will become part of Aon Re Global, where it will continue in the field of reinsurance, equipped with a worldwide reach and broad range of products.

The acquisition is to be assimilated into Aon Re Global, to form the fresh Aon Benfield Re brand.

Greg Case, CEO of Aon Corporation, has stated that the new Aon Benfield Re business will build upon existing achievements to drive forward value for the shareholder, business growth and expanding margins.

Benfield’s CEO, Grahame Chilton, has expressed the view that the deal offers Benfield’s shareholders certain and unique value, and that the two firms look forward to working together with one another.