Expanding its operations in Africa,
Marsh & McLennan Companies Inc.
) leading Consulting wing - Mercer - announced the purchase of
the leading information provider of compensation and benefits
survey data and rewards - Global Remuneration Solutions Ltd.
(GRS). However, the value and other details of the deal remain
Based out of South Africa, GRS collects the summaries of the
compensation and benefits from 36 sub-Saharan African countries.
The firm offers its specialized services to clients from various
sectors, across domestic and large multinational companies in
Meanwhile, this is not the first time that Marsh &
McLennanhas associated itself with GRS via Mercer. The strategic
partnership between Mercer and GRS dates back to 1999.
The present merger follows the healthy working relationship
established when both the firms together launched a forum in
2007, to expand GRS' presence in the emerging markets of the
Middle East and Africa. GRS offers a wide array of consultations
on developing an effective model on human resources and
compensation practices for smooth operations in various local and
On the other hand, the deal blends well with Mercer's scale
and utility of operations. While the pension benefits and
healthcare are witnessing a shift from the public to the private
sector in Africa, it is also opening up sizeable growth
opportunities within Mercer's pensions, health and benefits,
investment and talent consulting segments. The acquisition will
also add to Mercer's client base.
The deal also complements Marsh & McLennan's strategy of
expansion into potentially strong markets through mergers and
acquisitions.We believe such opportunistic deals not only exhibit
prudent management and future earnings potential, these also
enhance the company's competitive edge and global market
position. Overall, Marsh & McLennan has a history of
outperforming its peers, banking on its size, diverse product
offering and technical skill.
While Marsh & McLennan carries a Zacks Rank #3 (Hold),
other potential performers in the financial services industry
HCI Group Inc.
State Auto Financial Corp.
Global Indemnity Plc
). All these stocks carry a Zacks Rank #1 (Strong Buy).
GLOBAL INDEMNTY (GBLI): Free Stock Analysis
HCI GROUP INC (HCI): Free Stock Analysis
MARSH &MCLENNAN (MMC): Free Stock Analysis
STATE AUTO FINL (STFC): Free Stock Analysis
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