The insurance firm Jardine Lloyd Thompson has announced plans to take over the US financial services giant Marsh & McLennan.

JLT will buy the group for $5.6 billion (£4.3 billion) in cash as it looks to expand its speciality risk broking and global reinsurance business.

Dan Glaser, Marsh & McLennan’s chief executive, said that the acquisition will “create a compelling value proposition for our clients, our colleagues and our shareholders”.

“The complementary fit between our companies creates a platform to deliver exceptional service to clients and opportunities for our colleagues.”

“On a personal level, I have come to know, and respect, Dominic Burke and his management team from my time both at MMC and as an underwriter. I am confident that with the addition of the talented colleagues of JLT, Marsh & McLennan will be an even stronger and more dynamic company,” he added.

Shares in the UK insurance and reinsurance broker soared by 32 percent after the deal was announced in Tuesday’s early trading.

The deal values JLT at $6.4 billion, allowing shareholders to receive £19.14 per share, which is a premium of almost 34 percent to Monday’s closing price.

Dominic Burke, JLT’s chief executive, said: “I am enormously proud of what JLT has achieved, founded on our people, our culture and our unwavering commitment to our clients. MMC is, and always has been, one of our most respected competitors and I believe that, combined, we will create a group that will truly stand as a beacon for our industry.”

Shares in JLT (LON: JLT) are currently trading up 31.15 percent at 1,878.00 (0850GMT), whilst shares in Marsh & McLennan (NYSE: MMC) closed on Monday at 86.63.