Towers Perrin and Watson Wyatt to merge

Towers Perrin and Watson Wyatt are to merge to create the world’s largest employee-benefits consultancy. 

The new business is to be named Towers Watson & Co and Watson Wyatt chief executive John Haley will become chief executive of the combined firm and Towers Perrin chief executive Mark Mactas will be president.

The combined powers will have annual sales of around $3.2 billion and 14,000 employees.

The firms expect the merger to results in cost savings of around $80 million a year but it would be three years before they are realised.

Haley said: ‘The combination will further strengthen our core service lines while offering our clients an enhanced portfolio of proven offerings across a range of financial, risk and people management areas.’

The merger is still subject to shareholder and regulatory approval.