Why Management Consulting Company Aon Shares Are Taking A Hit Today
Portfolio Pulse from Shivani Kumaresan
Aon plc (NYSE:AON) is acquiring NFP, a property and casualty broker, benefits consultant, wealth manager, and retirement plan advisor, for $13.4 billion, funded by $7 billion in cash and $6.4 billion in shares. The deal aims to expand Aon's middle-market segment presence and is expected to create over $2.8 billion in value. However, it will be dilutive to adjusted EPS in 2025, breakeven in 2026, and accretive in 2027. Aon's shares dropped by 5.112% in premarket trading.
December 20, 2023 | 1:25 pm
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Aon plc is acquiring NFP for $13.4 billion, which is expected to be dilutive to its adjusted EPS in 2025 but accretive in 2027. Aon's stock fell by 5.112% in premarket trading.
The acquisition is significant for Aon, but the short-term dilutive effect on EPS and the substantial cash and stock funding have likely contributed to the negative investor sentiment, reflected in the premarket stock price drop.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100