Meetings on proposed merger between Willis and Towers Watson adjourned until Friday

Willis Group Holdings has announced that it has adjourned an Extraordinary General Meeting (EGM) on a proposed merger with Towers Watson that was scheduled for Wednesday until Friday at 9:30 a.m. EST.

The decision was made as a result of Towers Watson’s decision to adjourn a Special Meeting of Stockholders in order to provide additional time for its shareholders to vote, Willis said in a press release. Towers Watson’s meeting will be held at 8 a.m. EST at Royal Palm South Beach, 1545 Collins Avenue, Miami Beach, FL.

The Willis EGM was called to vote on four proposals related to the company’s proposed merger, including a proposal granting Willis the ability to adjourn the meeting to a later date. Pending confirmation that shareholders have voted in favour of that proposal, the meeting will be adjourned and reconvened on Nov. 20 at 09:30 a.m. EST at Willis’ New York offices at 200 Liberty Street in New York City.

“We continue to believe that the proposed deal is powerful for both sets of shareholders,” Dominic Casserley, Willis Group chief executive officer, said in the release. “Bringing together Willis and Towers Watson is expected to generate significant value through very achievable cost savings, incremental revenues and tax benefits. Both companies have successful growth strategies in their own right, but we can achieve more together, and faster, than we can alone.”

As previously disclosed, the merger is expected to create US$4.7 billion in “incremental shareholder value,” Willis said. The combined company is expected to generate between US$375 and US$675 million in incremental annual revenue in its healthcare exchange, large market property & casualty insurance broking, and global benefits consulting business. The companies also project annual cost savings of between US$100 and US$125 million, and a further US$75 million in annual tax savings.

Willis and Towers Watson announced the signing of a merger agreement in late June, with the combined company to be named Willis Towers Watson. At the time, Willis said that upon closing of the transaction, which is expected by Dec. 31, James McCann will become chairman, John Haley will be chief executive officer and Dominic Casserley will be president and deputy CEO. The new company’s board will consist of 12 directors in total – six nominated by Willis and six by Towers Watson, including Towers Watson’s and Willis’ current CEOs. Additionally, Roger Millay will be chief financial officer.