After long and not-so-secret negotiations, international broker Marsh has bought the Asia-Pacific operations of British broker Heath Lambert. While the Australian arms of both brokers declined to comment when rumours first surfaced, Marsh’s New York office was the first to break the news that the companies have “entered into an agreement” for Marsh to take over the Australian, New Zealand and Papua New Guinea operations of Heath Lambert.

Heath Lambert’s resources for the three countries, which include 16 offices and about 360 employees, will be integrated into Marsh’s operations. Marsh Pacific region Chairman John Richardson told Sunrise Exchange News the acquisition has taken about five months to complete but the final stages over the past couple of weeks went slowly because of the time difference between Australia and the Heath Lambert’s London HQ. “We ended up having to sign in the middle of the night.”

Mr Richardson declined to disclose the purchase price but said the takeover is now complete. “The services and capabilities of Marsh and Heath Lambert, particularly in the specialty insurance broking areas, are highly complementary in the Pacific region.”

Heath Lambert Executive Chairman Ian Martin emphasised that the acquisition was a “planned sale”, saying it is “a further step in the reshaping” of the company. The group will continue to broker certain wholesale business for Australasian clients through its London office.

“The group has excellent skills and market positions in a significant number of areas of the global insurance broking market,” he said. “In order to achieve strong future growth, the new management team is focusing the group’s financial and staff resources on these areas of strength.” Obviously the Pacific region doesn’t do it for Mr Martin.

Analysts suggest the buyout could be a perfect match for Marsh – the Government’s risk management adviser – because Heath Lambert is the reinsurance broker for the Government’s Comcover arm.