Regulatory Review Extends Closing Date
Arthur J. Gallagher (AJG) has received a request for additional information as part of the Hart-Scott-Rodino (HSR) filing for its proposed acquisition of AssuredPartners, extending the transaction’s closing date to the second half of 2025. Initially expected to close in the first quarter of 2025, this transaction is reportedly the largest sale of a U.S. insurance broker in industry history, with a total consideration of $13.45 billion.
Regulatory Process and Impact
AJG stated that it is “actively responding” to the request for additional information, noting that this is a common feature of the regulatory review for transactions of this type. The extension of the waiting period imposed by the HSR Act lasts until 30 days after AJG has substantially complied with the request. However, this period can be extended voluntarily by the parties or shortened by the antitrust agency.
Analyst Reactions
Analysts at KBW expressed surprise, mentioning the limited regulatory pushback expected under the Trump administration. They noted that the domestic middle-market insurance brokerage marketplace remains fragmented. Analysts at BMO Capital Markets also found the news unexpected and warned of potential employee attrition at AssuredPartners due to delays. They highlighted the risk to their above-consensus AJG revenue estimates if the deal does not proceed.
