Market Overview

Another One Bites The Dust: Anthem-Cigna Deal Blocked

Another One Bites The Dust: Anthem-Cigna Deal Blocked

The $54 billion proposed merger between Anthem Inc (NYSE: ANTM) and CIGNA Corporation (NYSE: CI) was officially shot down Wednesday.

The U.S. District Court for the District of Columbia issued an order enjoining the proposed merger, which would have created the largest U.S. health insurer based on membership numbers.

Anthem And Cigna

Anthem is the second largest health insurer, while Cigna is the fourth largest insurer. As such, the proposed acquisition has faced difficulties since day one and appears to be stuck. Even President Donald Trump's administration's pro-business attitude and M&A cabinet isn't enough for the deal to be approved.

Meanwhile, other notable deals are CAB) by Bass Pro Shops.

Regulatory Concerns

According to Reuters, the regulatory body had concerns that the proposed merger would result in less competition and higher prices for Americans.

"Regional firms and new specialized 'niche' companies that lack a national network are not viable options for the vast majority of national accounts, and they will not ameliorate the anticompetitive effects of this merger," the presiding judge, Amy Berman Jackson wrote.

The judge added that the transaction would also "have a substantial effect on competition in what is already a highly concentrated market."

Moreover, the judge had concerns that the bickering between the two management teams could be seen as evidence that the planned synergies as part of the merger cannot be achieved.

Cigna said in a press release that it will review the judge's opinion and evaluate its options in accordance with the merger agreement. Separately, Anthem said it plans on filing a notice of appeal and request an expedited hearing of its appeal to reverse the Court's decision.


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Posted-In: Anthem Anthem Cigna Merger Bass Pro ShopM&A News Health Care Movers General Best of Benzinga