Towers, Perrin, Forster & Crosby Inc. in Stamford, and Watson Wyatt Worldwide Inc. have been granted conditional clearance from the European Commission, allowing the companies to proceed with their merger.
The plan was first announced in June.
U.S. antitrust authorities previously cleared the transaction proposal of the two global consulting firms, which will form Towers Watson & Co.
“This is a key milestone in our progress toward completing the transaction that will bring together our two firms,” said John Haley, CEO of Watson Wyatt, who will also serve as CEO of Towers Watson.
As part of the European Commission’s decision, Watson Wyatt has committed to sell its life insurance actuarial software business, VIPitech. However, the European Commission has agreed that the merged company may retain a license to use the VIPitech software, allowing it to continue to serve those clients that have implemented this software. In a statement Watson Wyatt said it is currently preparing the business for sale and will be issuing more information in due course.
“We are very pleased to have received clearance from the commission on a timescale which will allow the companies to continue plans to finalize the merger by the end of this year, said Haley. “While we are disappointed that we could not retain VIPitech, we are committed to ensuring that VIPitech is sold as a viable business and that all of our VIPitech clients remain fully supported.”
The decision by the European Commission gives Towers Perrin and Watson Wyatt the necessary regulatory approvals to complete the union. The proposed transaction remains subject to additional conditions contained in the merger agreement, including the approval by the shareholders of Towers Perrin and Watson Wyatt.
Both companies’ shareholder meetings are scheduled for Dec. 18. The companies expect approval and currently anticipate the merger will become effective on Jan. 1.
