10 December 2010
Risk management and insurance brokerage firm Aon South Africa, a subsidiary of US company Aon Corporation, has made an offer to acquire JSE-listed Glenrand MIB for approximately R523-million.
The transaction will make Aon South Africa a leading risk broker the South African financial services market, as well as a leading global broker in Africa, with offices in 32 cities and towns throughout the continent.
“The proposed acquisition will elevate Aon’s position in the local market and provide our clients with a global network and top talent while offering additional economies of scale in certain of our niche segments,” Aon sub-Saharan Africa CEO Anton Roux said in a statement this week.
“Glenrand MIB’s strong presence in the South African market is a natural complement to Aon’s established Africa footprint.”
Glenrand MIB will add around 15 000 corporate and commercial clients to Aon – including many of the JSE’s blue-chip companies – as well as over 60 000 personal lines clients. Glenrand MIB’s existing operations in sub-Saharan Africa will strengthen Aon’s network, which together span 14 countries across the region.
The combined entity will also increase the number of offices nationally to 17.
“This acquisition brings together two premier organisations and reinforces Aon’s strong commitment to the African continent,” said Aon Risk Solutions CEO Steve McGill. “Combining the best talent between our two organizations enhances our ability to deliver world class solutions to our clients.”
If the acquisition is approved, Glenrand MIB’s clients will have immediate access to Aon’s global network spanning more than 500 offices in 120 countries across all business lines, including access to Aon’s global broking centres in London, Singapore and Bermuda and its reinsurance markets via reinsurance intermediary Aon Benfield.
Meanwhile, Aon Hewitt will provide the full suite of human capital consulting and outsourcing services.
In terms of the black economic empowerment (BEE) structure of the new entity, Aon envisages that at least 25% of the new shareholding will lie with BEE shareholders.
Glenrand MIB shareholders are expected to vote on the acquisition in due course and once all approvals are obtained, Glenrand MIB will delist from the JSE.
SAinfo reporter
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