Marsh & McLennan buys insurer Jardine Lloyd Thompson for £4.3bn
New York-headquartered Marsh & McLennan has agreed to buy UK insurance broker Jardine Lloyd Thompson (JLT) today in a £4.3bn deal.
Shares in FTSE 250 listed JLT soared by more than 30 per cent following the announcement this morning.
Marsh has offered £19.15 in cash for each JLT share, valuing the business at £4.9bn.
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The offer represents a premium of 33.7 per cent to the closing price of £14.32 per share on 17 September, the last business day before the deal was announced.
JLT shares are currently trading at £18.70.
The boards of both companies have recommended that shareholders accept the offer.
Panmure Gordon analyst Barrie Cornes said: “We view the offer as fabulous for JLT shareholders. Its recent moves into the US has potentially been the trigger for Marsh to make the offer but irrespective of the reason this is a great price.”
President and chief executive of Marsh Dan Glaser said the deal “creates a compelling value proposition for our clients, our colleagues and our shareholders.”
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Adding: “Bringing together our two enterprises will create a platform to deliver exceptional service to clients across geographies and specialties.”
Goldman Sachs is acting as financial adviser to Marsh & McLennan while Slaughter and May and Wachtell Lipton Rosen & Katz are its legal advisers and Davis Polk & Wardwell is providing legal advice on the bridge loan agreement.
JP Morgan Cazenove and Simon Robertson Associates are acting as financial advisers to JLT with Clifford Chance providing legal advice.