Anthem-Cigna Deal Called Off Hours After Aetna-Humana Deal Falls Through

The proposed mega-merger between the fourth largest health insurance company CIGNA Corporation CI and second ranked Anthem Inc ANTM has been officially called off.

In a press release Tuesday, Cigna announced that it had terminated its merger agreement with Anthem, believing that the transaction would not receive regulatory approval and that “terminating the agreement is in the best interest of Cigna’s shareholders.”

“Cigna is disappointed in the outcome of this process. Cigna believed from the outset that the merger of the two companies had the potential to expand choice, improve affordability and quality and further accelerate value-based care,” the company said in a statement.

Related Link: Aetna, Humana Call Off Merger; Both Companies Said To 'Move Forward With Their Respective Strategies'

An 8-K regulatory filing from Cigna shows that Anthem must pay a $1.85 billion reverse termination fee and is seeking an additional $13 billion in added damages.

The announcement comes at the same time that another significant merger, a $37-billion healthcare takeover between Aetna Inc AET and Humana Inc HUM was called off Tuesday, following Aetna’s decision to not appeal a ruling by a federal judge who blocked the deal due to antitrust concerns. Aetna will have to pay Humana a $1 billion breakup fee after the fallout.

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