NEW YORK (TheStreet) -- Shares of Willis Group Holdings (WSH) were soaring, sharply higher by 5.59% to $47.94 on heavy volume in late morning trading Tuesday, after the company announced its $18 billion all stock merger deal with Towers Watson & Co (TW) this morning.
Under the terms of the deal, Willis shareholders will own a majority of shares with 50.1%, while Towers Watson shareholders will hold the rest with 49.9%.
The combined company will be named Willis Towers Watson and is expected to rake in $8.9 billion in annual revenue, according to the AP.
The two companies estimate that the merger will save between $100 million to $125 million within three years after the closing of the deal.
Shares of Towers Watson were lower by 2.3% to $134.80 today.
London-based Willis Group provides insurance brokerage, reinsurance and risk management consulting services.
Separately, TheStreet Ratings team rates WILLIS GROUP HOLDINGS PLC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate WILLIS GROUP HOLDINGS PLC (WSH) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. Among the primary strengths of the company is its solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows: