WLTW - KBW posits on Aon selling Willis Re to gain EU approval on WLTW merger

Keefe, Bruyette & Woods analyst Meyer Shields sees potential for Aon ([[AON]] -3.1%) to sell Willis Re in order to obtain EU regulator approval for its acquisition Willis Towers Watson ([[WLTW]] -3.1%).The European Commission is investigating the merger to decide if it will hurt competition with already limited participants, especially on "large multi-national" account brokerage, "space and aerospace manufacturing" and other unnamed risk classes in specific national markets, reinsurance brokerage, and employment-related retirement, health and welfare consulting administration.Shields's conversations with investors focus mostly on a potential sale of Willis Re, as "reinsurance brokerage is already enormously concentrated (the top-3 brokers probably account for almost 90% of global reinsurance brokerage revenues) and since market leaders AON and MMC both break out their reinsurance revenues, creating an easily-identifiable segment."Considers Arthur J. Gallagher ([[AJG]] -3.4%) the best fit for acquiring Willis Re.Sees a possible divestiture of Willis Re and use of proceeds to

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KBW posits on Aon selling Willis Re to gain EU approval on WLTW merger