Marsh & McLennan to buy UK insurance broker JLT for $5.66B

By MarketsFOXBusiness

Marsh & McLennan has agreed to buy UK insurance broker Jardine Lloyd Thompson Group in a $5.66 billion deal.

Marsh & McLennan said the deal will enhance its position in key growth markets in Asia and Latin America. 

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The deal is expected to boosted its revenue to around $17 billion from around $14 billion currently. 

Following the deal, JLT Chief Executive Dominic Burke will join Marsh & McLennan as vice-chairman and serve on its executive committee.

“The acquisition of Jardine Lloyd Thompson creates a compelling value proposition for our clients, our colleagues and our shareholders," said Burke, "The complementary fit between our companies creates a platform to deliver exceptional service to clients and opportunities for our colleagues."

Job cuts are expected with Marsh & McLennan saying it will cut between 2% and 5% of the combined workforce of the two companies.

The deal is expected to close in spring 2019, subject to shareholder and regulatory approval.