Aetna Inc. ended its $37 billion takeover of Humana Inc., after deciding not to appeal a ruling by a federal judge who blocked the health insurers’ combination on antitrust grounds. The companies came to a mutual agreement to terminate the deal, and Aetna will pay Humana a $1 billion breakup fee, or about $630 million after taxes.
Category: Humana
U.S. Health Insurance Mergers Killed as Companies Plot Next Move
After 18 months of courtship and court cases, two massive deals that would have reshaped the U.S. health insurance industry have both been declared dead, blocked by judges who said they’d do unacceptable harm to competition in the industry. Now, the companies are right back where they started.
Humana surprises in 4Q; will talk next steps with Aetna
Humana topped most expectations for the fourth quarter and said that next week it will detail both its outlook for the year and the next step in its proposed acquisition by Aetna. A federal judge rejected Aetna’s bid last month due in part to the potential impact on competition.
Federal judge swats Aetna-Humana insurer combo
A federal judge has rejected health insurer Aetna’s plan to buy rival Humana Inc. for about $34 billion and become a major player in the market for Medicare Advantage coverage. U.S. District Judge John Bates says in an opinion filed Monday that he largely agrees with federal regulators who contended that such a combination would hurt competition.
Aetna And Humana Stock Each Drop 2% In Heavy Volume After Federal Judge Blocks Merger
Aetna Inc. shares dropped 2.4% and Humana Inc. shares dropped 2.0% in heavy volume during midday trade Monday after The Wall Street Journal and Reuters reported that a federal judge had blocked their merger on antitrust grounds. The federal judge’s Monday decision said the DOJ had successfully argued that the deal could hurt consumers with Medicare Advantage plans, according to the WSJ.