The European Commission has approved Aon’s acquisition of Willis Towers Watson following a commitment made by the companies to divest some assets to Arthur J. Gallagher.

The divestments will strengthen Gallagher’s reinsurance and commercial risk brokerage capabilities and improve its footprint in the European Economic Area, ensuring a credible alternative to the combined Aon and Willis Towers Watson, the commission says.

“The remedy package accepted by the commission ensures that European companies, including insurance companies and large multinational customers, will continue to have a good choice and good services when selecting a broker suitable for their needs,” Executive Vice-President Margrethe Vestager said.

Aon and Willis Towers Watson in May outlined plans to divest a suite of businesses including reinsurance broker Willis Re to Arthur J. Gallagher for $US3.57 billion ($4.7 billion) in a bid to overcome the concerns of regulators.

The European Commission’s decision was “a major step” demonstrating continued progress toward gaining regulatory clearances for the proposed combination, the companies said last week.

The merger still has to clear hurdles in other jurisdictions, including the US where the Department of Justice has launched legal action to block the takeover. A trial is proposed to start in November.

In New Zealand, the Commerce Commission has extended its decision date from July 2 to August 20, while the Australian Competition and Consumer Commission says it is closely following the US developments.