Cigna Ditches Humana Merger: U.S. health insurer Cigna has ceased efforts to merge with rival Humana following failed negotiations, as reported by The Wall Street Journal.
In recent weeks, the two insurance giants explored a potential merger with a projected value of $140 billion by year-end. Shareholder concerns and financial disagreements prompted the abandonment of this plan, causing Cigna’s stock to plummet nearly 10%, according to WSJ insiders.
Cigna, based in Bloomfield, Conn., expressed continued support for the advantages of a combined entity, emphasizing enhanced access to care and reduced consumer costs. Despite the setback, the company affirmed a shift towards smaller acquisitions. Cigna plans additional stock buybacks totaling $10 billion, aiming for a cumulative repurchase of $11.3 billion.
The merger saga, dating back to talks initiated in 2015, faced twists and turns. Humana ultimately opted for a $34 billion deal with health insurer Aetna, later scrapped in 2017 due to judicial concerns over pricing and benefits.
A potential merger between Cigna and health insurer Anthem also met a federal judge’s rejection in 2017 as part of an antitrust lawsuit.The Hill has reached out to Cigna and Humana for confirmation of WSJ’s report.
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Our Reader’s Queries
Is Cigna buying out Humana?
Cigna has decided to abandon its plans to merge with Humana, as the two healthcare giants failed to reach a consensus on financial terms. The Wall Street Journal reported that the negotiations between the companies have come to a halt.
Is Cigna part of Humana?
Cigna, a leading U.S. health insurer, has abandoned its efforts to acquire Humana, a rival company, due to a disagreement over price. As per sources familiar with the matter, the negotiations failed to reach a mutually agreeable deal. Meanwhile, Cigna has announced its plans to repurchase shares worth $10 billion.
Is Humana merging with Unitedhealthcare?
In a $5.5 billion deal, Humana, a major managed care company in the US, is set to merge with United Healthcare. The merger will create a $27 billion company that will operate across the US, as well as in Hong Kong, Singapore, and South Africa. This move is expected to have a significant impact on the healthcare industry and the way healthcare services are delivered to patients.
Did Aetna purchase Humana?
The merger agreement between Aetna (NYSE: AET) and Humana (NYSE: HUM) has been terminated after a ruling from the United States District Court for the District of Columbia granted a request from the United States Department of Justice to stop the merger.