POST Online Media Lite Edition



 

EC approves acquisition of Jardine Lloyd Thompson by Marsh & McLennan

Staff Writer |
The European Commission has approved, under the EU Merger Regulation, the acquisition of Jardine Lloyd Thompson (“JLT”) by Marsh & McLennan Companies (“MMC”).

Article continues below




The approval is conditional on the divestment of JLT's global Aerospace practice.

Marsh & McLennan Companies and Jardine Lloyd Thompson plc are global insurance brokers specialised in assisting clients in securing suitable cover for large and complex insurance risks in specialty sectors, such as aviation and large energy projects.

The two companies are also active in the broking of reinsurance, and in the provision of retirement and employee benefits-related services. MMC and JLT are two of the most significant players in both of these markets in the European Economic Area (EEA) and globally.

The Commission examined in particular the effects of the proposed transaction on competition in the markets where the activities of the companies overlap leading to affected markets:

- the supply of insurance broking services for specialty sectors, such as energy, aircraft operators, aerospace manufacturers and space, and

- the provision of employee benefits-related services such as pensions administration and the fiduciary management of pension funds.

As regards insurance broking services for specialty sectors, the Commission was concerned that the transaction, as originally notified, would have significantly reduced competition in the insurance brokerage. markets for the specialties of Aircraft Operators and Aerospace Manufacturing.

Aircraft Operators insurance predominantly consists of the coverage against damage to the aircraft (“hull coverage”) and general liability to passengers and third parties, for example in case of accident. In this area, the merger would result in a significantly concentrated market, reducing the number of main competitors from three to two at EEA level and from four to three at global level.

Aerospace Manufacturing insurance refers to the distribution of commercial insurance to cover risks associated with the manufacturing of aerospace products. Manufacturers of aerospace components purchase cover to insure against damage caused by, or liability arising out of, defects in their products. In this area, the merger would reinforce MMC's strong market position and would reduce the number of main competitors from four to three at both EEA and global levels.

The Commission found that barriers to entry are high on both markets, as customers require suppliers to have a proven track record, access to scarce expertise, and global reach in order to compete effectively. As a result, the Commission was concerned that the transaction as notified would have negatively affected competition and could have led to higher prices, less choice and lower quality of services in these markets.

The Commission also looked into insurance broking for other specialty markets but did not identify any competition concerns.

As regards the provision of employee benefits-related services, the Commission found that the proposed merger would raise no competition concerns because a sufficient number of alternative suppliers is present, and the companies are not close competitors.

To address the Commission's competition concerns, the companies offered to divest JLT's global Aerospace practice to a suitable buyer. This practice includes all of JLT's activities in Aircraft Operators, Aerospace Manufacturing and Space, as well as a separate, standalone Aviation division (Hayward Aviation).

These commitments fully address the Commission's concerns as they remove the entire overlap between the companies' activities in the supply of insurance broking services in the specialties of Aircraft Operators and Aerospace Manufacturing.

Therefore, the Commission concluded that the proposed transaction, as modified by the commitments, would no longer raise competition concerns in the EEA. The decision is conditional upon full compliance with the commitments.


What to read next

Jardine Lloyd Thompson to sell unit to meet takeover regulation
Marsh & Mclennan gets U.S. antitrust approval for GBP4.3 billion Jardine Lloyd deal
Centerra Gold to acquire Thompson Creek Metals in $1.1 billion deal

Excessive rainfall in Carolinas and southern Rockies; dangerous heat returned to western U.S.

 
A cool air mass arriving from central Canada is bringing a welcome relief to the heat and humidity into the northeastern quadrant of the country today.
 
 

Latest

U.S. oil rig count rose this week
Matcha launches EV charging at Brooklyn Army Terminal
Telin and BW Digital to enhance DC-to-DC connectivity with new Indonesia - Singapore cable
First major windfarm in U.S. shut after incident

NEWS

Microsoft outage causes businesses from America to Australia to stop working

U.S. Senator Bob Menendez found guilty in corruption case
Heavy rainfall along U.S. eastern seaboard; dangerous heat wave shifting
U.S.: Dangerous heatwave
Severe thunderstorms across portions of U.S. Central Plains and Mississippi Valley; heat continues in Southern Plains
New Delhi airport roof collapses under heavy rain
 

BUSINESS

EIB: New agreement to provide additional €2bn to reconstruction of areas hit by central Italian earthquake

Los Angeles to begin work on film sound stage and production studio campus
U.S. drillers cut oil and gas rigs to 584
Scotland secured record inward investment in 2023
Chinese seaport cities register soaring output of port economy in 2023
U.S. bankruptcies in June hit record high since 2020
 

Trending Now

Matcha launches EV charging at Brooklyn Army Terminal

Answer the phone, resident

Sign says Nashville Tennessee

Guadalajara, a city of flowers and fountains


POLITICS

Slovenia considers diversifying its natural gas supply by importing from Azerbaijan

EU to invest record 7 bln euros into sustainable transport infrastructure
Attorney General Ken Paxton stops Biden’s ban on liquified natural gas exports
Germany to cut Huawei, ZTE parts in 5G network from 2026
North Macedonia to take 500 million euros loan from Hungary
Under Secretary Fernandez travels to Japan and Indonesia
 

Today We Recommend

EU to invest record 7 bln euros into sustainable transport infrastructure


Highlights 

EssilorLuxottica to buy Supreme Brand for $1.5 billion

Darden Restaurants to acquire Chuy's Holdings, Inc. in approximately $605 million transaction

Ericsson Q2 sales down but North America up


COMPANIES

UK: Ford white collar dispute worsens as over 1,200 office staff ballot for strike

EssilorLuxottica to buy Supreme Brand for $1.5 billion
E.ON and MAN Truck & Bus partner to establish Europe’s largest public charging network for electric trucks
Darden Restaurants to acquire Chuy's Holdings, Inc. in approximately $605 million transaction
Major funding secured for RWE’s hydrogen projects in Germany
APM Terminals Suape advances sustainable port operations with major investment in all-electric handling equipment
 

CAREERS

Africa Finance Corporation appoints executive director, financial services

Lindemann Metal Recycling: Markus Tandel named head of procurement and aftermarket
Travis Leonard joins Lockton as CFO
African Development Bank appoints director of statistics department
Azentio expands its leadership team with two new appointments
Afreximbank announces board changes
 

ECONOMY

Eurozone reports modest Q1 GDP growth, stable annual inflation

Italy sees faster economic growth in Q1
Slovenia's economy expected to grow 0.9 pct in Q1
Italy faces deficit infringement procedure
Real GDP increased in all 50 U.S. states
Inflation continues to decline in Germany
 

EARNINGS

Ericsson Q2 sales down but North America up

Lockton revenue $3.55 billion
Motorcar Parts of America Q4 sales $189.5 million
Limoneira Q2 revenue $44.6 million
Lululemon athletica Q1 revenue increased 10% to $2.2 billion
PVH Q1 GAAP EBIT $205 million
 

OP-ED

Micromanaging is the worst enemy of efficiency and teamwork

Niger set to monetize massive gas reserves through Saharan natural gas pipeline
Putting the brakes on EV folly that choked the market
Oil discovery in Kavango Basin may mean huge benefits for Namibians
Cape Town and Dubai battle over Africa's energy future
Is America going to lose its superpower status?
 

AGRIFISH

Hong Kong suspends import of poultry meat, products from some areas in U.S.

Mozambican farmers to get $2 million fertilizer financing boost
Canada and Alberta supporting Alberta Beef Producers
EU allocates €77 million in emergency support to farmers in Austria, Czechia, Poland and Portugal
Brazil opened its market for Australian mutton and lamb
Hong Kong suspends import of poultry meat and products from areas in Australia and U.S.
 

LEADERSHIP

Study finds workers misjudge wage markets

Some organizations may need to expand their hierarchical structures earlier than others
Study finds there's right way and wrong way to deliver negative feedback in workplace
Allyship is critical and its needs appreciation
Generating 'buzz' about new products can influence their success
Hiring 'problem directors' can knock up to 64% off firm's value
 

CRIME

Italy issues $6.4 million fine over Chinese cars badged as Italian

EU Commission fines Mondelēz €337.5 million for cross-border trade restrictions
HSBC pays penalties for alleged breaches of Consumer Data Right rules
Sanofi to settle thousands of Zantac cancer lawsuits
Former asset manager and board member of Geneva private bank referred to Swiss Federal Criminal Court
South Africa: SAP ordered to pay SIU $26m over 'invalid' Eskom contracts
 

Magazine

TRAVEL

Radisson Hotel Group debuts in the heart of Tunisia’s capital city, Tunis

Morocco’s first Radisson branded hotel opens in Casablanca
Buna channels, an unreal and beautiful part of Bosnia and Herzegovina
JW Marriott unveils Mindful Haven with opening of JW Marriott Hotel Nairobi
Sotheby's Sports Week returns with fantastic artifacts
Red Roof properties open in Michigan
 

SEA, LAND, AIR

Citroën C3 Aircross, the most affordable compact SUV with 7 seats

2025 Chevrolet Equinox stands apart with fresh looks and capability
Hill Helicopters HX50, luxury in the sky
Opel Movano becomes fully equipped camper van
Porsche Panamera, new hybrid variants
Dodge Charger, 670 horsepower of electric
 

DESIGN

Cold night, hot fire pit, cool entertainment

Embellish your home with PVC panels
You'll have to hurry if you want one of 20 new Louis Vuitton watches
Luxury duvet looks good, fells good and keeps you healthy
Vacheron Constantin, watches for life and more
Schüller kitchens, where functionality marries design
 

GADGETS

MESA/Boogie Celebrates 40-year partnership with John Petrucci

reMarkable 2, monochrome tablet for your thoughts and your eyes
OnePlus Ace 3V, first with Snapdragon 7 Plus Gen 3
ASUS Zenfone 11 Ultra, flagship with a reason
Samsung Galaxy S24 is photography powerhouse
Casette tapes are making a big comeback, and so are portable players
 

HEALTH

New Alzheimer's treatment approved by FDA

UK introduced new pregnancy prevention measures for topiramate (Topamax)
UK: People with HIV can now donate eggs or sperm to start family
EU health watchdog urges vaccinations to stem surge in Whooping Cough cases
Brazil resumes insulin production after two decades
India launches first home-grown gene therapy for cancer
 

MEANTIME

Exoplanet-hunting telescope to begin search for another Earth in 2026

India to build first phase of its own space station by 2028
Roscosmos chief approves schedule of creating Russian orbital station through 2033
Potentially habitable 'exo-Venus' with Earth-like temperature discovered
Rare species of wild bees discovered in Berlin
SLAC completes construction of largest digital camera ever built for astronomy