Aon Plc is in "advanced talks" to sell its benefits outsourcing business to private equity firm Clayton Dubilier & Rice LLC, Reuters reported, citing "people familiar with the matter."

Clayton Dubilier & Rice submitted a bid of about $4.5 billion earlier in January, edging out a competing bid from Blackstone Group LP, those people reportedly said. Negotiations are ongoing and the discussions' outcome may change, according to the Reuters report.

The business Aon is selling manages the processing of claims for companies, including defined benefit, defined contribution and health and welfare administrative services.

Aon reportedly hopes to announce a confirmed deal on Feb. 10, when it announces earnings.