Aon PLC confirmed Tuesday that it is considering a bid for rival Willis Towers Watson PLC in a deal that potentially would create a brokerage behemoth with more than $19 billion in annual revenue.

In a statement, Aon said: “The company confirms that it is in the early stages of considering an all-share business combination with Willis Towers Watson. The company emphasizes that, at this point, its evaluation of a potential transaction is at a preliminary stage and there can be no certainty that any transaction will take place nor as to the form or terms on which any transaction might be pursued.”

The announcement followed a Bloomberg report earlier on Tuesday citing unidentified sources that said Aon is preparing to submit a bid for its rival “in the coming weeks” and the firm’s “have held preliminary talks.” 

If it goes ahead, a merger of Aon, the world’s second largest brokerage, with Willis Towers Watson, the No. 3 brokers, would create the largest insurance brokerage in the world, eclipsing rival Marsh & McLennan Cos. Inc., which is in the process of buying Jardine Lloyd Thompson Group PLC, another Top 10 brokerage.

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