Professional services firm Aon has agreed to divest its German retirement and investment business to Lane Clark & Peacock (LCP) for an undisclosed price.

The business to be divested includes pensions consulting, pension insurance broking, pensions administration, and investment consulting operations.

Aon said that the transaction resolves concerns raised by the European Commission over its pending $30 billion acquisition of Willis Towers Watson pertaining to the markets in which these businesses are active.

Alongside Willis Towers Watson, Aon is said to be working toward securing additional regulatory approval in all relevant jurisdictions, which includes the US, where regulators are undertaking an independent review of the proposed merger aimed at creating the largest insurance broker in the world.

Greg Case – Aon CEO said: “This agreement demonstrates further momentum on the path to close our proposed combination with Willis Towers Watson.

“We recognize the significant contributions these colleagues have made on behalf of our clients during their time with Aon. LCP shares with us a culture of innovation and excellence and we know these colleagues have a positive future at LCP.”

Lane Clark & Peacock is an owner-managed pensions, investment, and insurance consultancy in the UK and Ireland. The company, which has a considerable market share in Germany, is expected to gain a leading market position through the deal in the important market for pensions consulting and related services in the country.

Aaron Punwani – Lane Clark & Peacock CEO said: “A key part of LCP’s strategy is diversifying the business into different markets with long-term growth potential.

“The German pensions consulting market is the third largest in the world, after the U.S. and the UK, which makes it a natural place for LCP to achieve a leading position, mirroring what we have achieved in the UK in recent years.”

The retirement and investment business being acquired by Lane Clark & Peacock includes 350 employees across five offices in Germany.

The deal is subject to the closing of the pending Aon, Willis Towers Watson merger and also other customary closing conditions.

  Aaron Punwani, Aon, European Commission, Germany, Greg Case, Lane Clark & Peacock, Willis Towers Watson