January To See Anthem-Cigna Merger Fate Decided

The fate of proposed merger of CIGNA Corporation CI with Anthem Inc ANTM will be sealed in January as the U.S. Department of Justice tries to block Anthem from completing its $48 billion acquisition.

The deal would create the largest U.S. health insurer with 53 million members. However, regulators are concerned that this leadership could curb competition and limit consumer choice. They are also worried the merger would result in higher premium prices for customers.

To complicate matters, DoJ attorneys expressed concern that the rumored rift between the executives of the two companies could cause the merger to fall apart even if the regulators clear the deal; such a failure could harm both companies' customers.

Dates To Circle

Against this backdrop, the following are key dates to watch related the merger:

• January 4: Parties in the Anthem/Cigna trial will file their proposed findings from the second phase of the trial to Judge Jackson.
• January 31: Original closing deadline for Anthem/Cigna merger. However, the parties have the option to extend that to April 30, 2017. Anthem is on the hook for a $1.85 billion termination fee if the deal fails to close.
• End of January 2017: Judge Jackson is expected to issue her ruling on Anthem/Cigna by the end of January.

At last check, shares of Anthem were up 0.35 percent at $144.77, while Cigna shares had fallen 1.04 percent at $135.58.