English
French
German
Italian
Russian
Spanish
Cigna, Humana explore healthcare megamerger – WSJ
Cigna, Humana explore healthcare megamerger – WSJ By Investing.com
Breaking News
‘;
AuthorFrank DeMatteoStock Markets
Published Nov 29, 2023 01:08PM ET
Updated Nov 29, 2023 02:47PM ET
© Reuters Cigna, Humana explore healthcare megamerger – WSJ
(Updated – November 29, 2023 2:45 PM EST)
Cigna (NYSE:CI) and Humana (NYSE:HUM) are in talks to combine in a stock-and-cash deal, the Wall Street Journal reported Wednesday afternoon citing people familiar with the matter. A deal to merge could be finalized by the end of the year, it was added.
The news sent shares of both health-insurance companies lower in mid-day trading, with Cigna last trading down 5.9% and Humana down 1.5%.
If an agreement is reached, the merged company would rival UnitedHealth Group (NYSE:UNH) andCVS Health (NYSE:CVS) in size.
Cigna had revenue of about $181 billion last year, while Humana posted revenue of $93 billion.
In 2015, Cigna and Humana considered merging, yet Humana opted for a deal with Aetna. However, this alliance faced antitrust issues and was blocked by a judge. Consequently, Aetna was acquired by CVS in 2018. Another attempt to merge Cigna with Anthem, rebranded as Elevance Health (ELV), also fell through due to an unfavorable antitrust ruling.
To alleviate antitrust worries, Cigna is considering selling its current Medicare Advantage division, potentially bringing in billions through this divestment.
Commenting on the news, analysts at TD Cowen said news of the potential merger shouldn’t come as a complete surprise following a report in November that Cigna was considering selling its current Medicare Advantage division. However, they see antitrust concerns as keeping a lid on the stock prices if a deal is ultimately announced.
“We believe an announcement is likely but certain to be challenged by antitrust regulators which will create an 18-24 month overhang and plausible 20-30% deal spread,” the analysts commented.
Cigna, Humana explore healthcare megamerger – WSJ
Terms And Conditions
Privacy Policy
Risk Warning
Do not sell my personal information
© 2007-2023 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
