Cigna rules out a merger with Humana
Add Axios as your preferred source to
see more of our stories on Google.
Photo; Cheng Xin/Getty Images
The courtship between insurance giants Cigna and Humana is just not meant to be, Cigna officials said Monday.
Why it matters: The statement marks the likely end to on-and-off discussions about combining the companies into what would have been the nation's second-largest insurer — and potentially drawing antitrust scrutiny.
"The Cigna Group remains committed to its established M&A criteria and would only consider acquisitions that are strategically aligned, financially attractive, and have a high probability to close," Cigna officials wrote in a statement.
- In the near-term, that includes focusing on share buybacks, they said.
- The company's shares jumped on the news Monday, while Humana's shares fell.
Catch up quick: Last month, Bloomberg reported and Axios confirmed the insurance titans rekindled their merger talks less than a year after they abandoned a potential deal because they couldn't agree on a price.
- President-elect Donald Trump's win further fueled conjecture over a potential deal, with the expected return of a more corporate-friendly regulatory environment, the Wall Street Journal reported.
- Cigna and Humana have a combined market cap of $125 billion, which is well below UnitedHealth ($525 billion) but well above Aetna owner CVS Health ($76 billion).
Cigna said it would actively repurchase shares in the fourth quarter and in 2025, using the proceeds from the planned sale of its Medicare businesses, which is expected to close in the first quarter of 2025.
- Humana did not immediately respond to a request for comment.
