Willis Europe BV, a division of  Willis Group Holdings plc (WSH), announced that Willis South Africa has acquired 22.5% of the equity in Amabubesi Consulting Services (ACS).

ACS, a specialist employee benefits consulting business, is part of the Amabubesi Group, a South African investment company. Earlier, in August 2009, Amabubesi acquired a 26% stake in Willis South Africa.

Also,  Peter Moyo, Executive Director of Amabubesi, and Ndivhuwo Ravele, former CEO of ACS, have joined the board of Willis South Africa as Non-Executive Directors; and Ryck Genis, CEO of Willis South Africa, has joined the board of ACS. The joining of the top executives of one company to the board of other is expected to create synergies between the companies.

Wllis believes South Africa offers excellent long-term growth potential as it continues to grow. This acquisition, therefore, will further strengthen its position in South Africa as well as enhance Willis’ employee benefits business supported by Willis expertise and extensive global resources.

Willis Group reported a solid fourth quarter on the heels of higher commissions and fees coupled with lower operating expenses.

We expect solid retention levels and new business growth, enabling the company to increase revenues.

We maintain a Neutral recommendation on Willis over the long term. The quantitative Zacks #3 Rank (short-term Hold rating) for the company indicates no clear directional pressure on the stock over the near term.

Headquartered in London, United Kingdom, Willis Group Holdings plc and its subsidiaries provide a broad range of insurance brokerage, reinsurance and risk management consulting services to its worldwide clients, both directly and through its associates. Its major competitors are Arthur J Gallagher & Co. (AJG), Aon Corporation (AON) and Marsh & McLennan Companies Inc. (MMC).

 
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