Aon and Willis Towers Watson said they have agreed to terminate their roughly $30bn deal and end litigation with the Justice Department, which alleged the tie-up would lead to higher prices and reduced innovation for US businesses.

The deal termination follows a Justice Department lawsuit last month that came after an investigation of more than a year. The department said the insurance brokerages’ combination would eliminate competition in several different US product markets, including brokering services for property, casualty and liability insurance, as well as health benefits for large corporate customers.