Towers Perrin and Watson Wyatt will combine in a merger of equals to form a new, publicly-listed company called Towers Watson & Co.

The merger between the HR consultancies is expected to complete in the fourth quarter of 2009 and it is hoped it will bring increased growth and revenue for shareholders, more solution options for clients, more career opportunities for staff and increased profitability through operating synergies

Watson Wyatt CEO John Haley will serve the combined company as CEO and Towers Perrin CEO Mark Mactas will be president.

Haley said: "The combination will further strengthen our core service lines while providing our clients with an enhanced portfolio of proven offerings across a range of financial, risk and people management areas. Towers Watson will have tremendous global reach and service breadth to meet the growing needs of the world's largest multinational corporations. As we provide more value for our clients, we in turn create value for our people and our shareholders."
 
Mactas added: "This is an important transaction for our respective organisations that positions us well for a future of accelerated growth and higher levels of profitability. The fit between our firms is excellent, starting with a deep commitment to client service and shared values of integrity, professionalism and respect. Our service lines and geographic strengths are also highly complementary, which creates great opportunities for growth. We couldn't be more excited about this combination, which will change the landscape of our industry."