Arthur J. Gallagher will pay $US3.57 billion ($4.6 billion) for a suite of businesses including reinsurance broker Willis Re under a transaction arising from Aon’s moves to win European regulatory clearance for its merger with Willis Towers Watson.

The sale of businesses is contingent on completion of the merger, which the companies now say they are working to conclude “as soon as possible during the third quarter” after previously aiming for the first half.

Arthur J. Gallagher Chairman, President and CEO Patrick Gallagher says more than 6000 people will join the company as a result of the transaction.

“This acquisition will accelerate our long-term strategy by significantly expanding our global value proposition in reinsurance, broadening our retail brokerage footprint and strengthening key niches and specialty brokerage offerings,” he said.

“The powerful combination of expertise, geographic reach and scale that this acquisition presents will greatly enhance our offerings to clients and prospects, while also providing significant value for our colleagues, carrier partners and shareholders.”

Gallagher says the combined operations to be acquired generated an estimated $US1.3 billion ($1.7 billion) of pro-forma revenue last year.

The reinsurance brokerage operations, which include both treaty and facultative arrangements, generated about $US750 million ($970.7 million) in revenue, with the business representing more than 750 insurance and reinsurance company clients, across more than 25 countries, and placing more than $US11.5 billion ($14.9 billion) of premium annually.

The UK and European brokerage operations generated approximately $US500 million ($647 million) of revenue and include certain operations in Germany, Netherlands, Spain and France as well as specialty operations in the UK principally involving cyber, space and aerospace products.

The North American assets relate to predominantly middle-market and large-account clients located in select markets such as San Francisco, Houston and Bermuda, across niches such as construction and energy.

The European Commission currently has an August 3 deadline for a decision on the merger, which will create the world’s largest broking company.

Aon says the agreement resolves questions raised by the commission, and by regulators “in certain other jurisdictions”, while the companies are still working toward gaining approvals in other regions, including the US, where an independent review is underway.

Aon says it remains committed to $US800 million ($1.04 billion) of cost synergies from the merger, with the combination to still create significant shareholder value.