Consultancy firm Marsh & McLennan has agreed to buy employee benefits provider Jardine Lloyd Thompson (JLT) for £4.3bn.
Marsh & McLennan said the deal would create a "pre-eminent global firm" offering its clients advice and solutions for their employees.
The American company also said the deal would increase its positions in growth markets such as Asia and Latin America, as well as in the retirement and benefits market in the UK.
JLT shareholders will be paid £19.15 in cash for each share, which the two companies said would represent a 34 per cent premium on Monday's closing price.
Dan Glaser, president and chief executive of Marsh & McLennan, said: "The combination [...] creates a compelling value proposition for our clients, our colleagues and our shareholders. JLT is a complementary strategic fit with [Marsh & McLennan].
"Bringing together our two enterprises will create a platform to deliver exceptional service to clients across geographies and specialties."
The deal is expected to increase Marsh & McLennan's revenues to about $17bn (£12.9bn).
Dominic Burke, chief executive of JLT, said: "I am enormously proud of what JLT has achieved, founded on our people, our culture and our unwavering commitment to our clients. [Marsh & McLennan] is, and always has been, a highly respected competitor and I believe that, combined, we will create a group that will truly stand as a beacon for our industry."
In 2015 Mercer, which is a wholly-owned subsidiary of Marsh & McLennan, completed the acquisition purchase of Jelf Financial Planning to increase its ability to offer financial advice to companies and their employees.
damian.fantato@ft.com
