Marsh & McLennan Companies has entered into an agreement with a financial institution counterparty to repurchase $800 million worth of outstanding MMC common stock in an accelerated share repurchase transaction.

MMC will conduct the transaction pursuant to the board of directors' $1.5 billion share repurchase authorisation announced on August 7. MMC will fund the transaction with proceeds from the recent sale of Putnam Investments.

"This $800m buyback continues MMC's ongoing commitment and substantive actions to return value to shareholders," said Michael G. Cherkasky, president and chief executive of MMC.

"The successful closing of the Putnam transaction bolsters our financial flexibility and sharpens our focus on the firm's core businesses in risk, strategy and human capital."

As of July 31, before giving effect to the repurchase transaction, MMC has 541.0 million shares of common stock outstanding. The total number of shares to be repurchased will be based on the volume-weighted average price of MMC's stock through a contractually specified averaging period.