Aetna and rival Humana are terminating their merger, after their $34 billion deal was blocked by a federal court on antitrust grounds. Aetna will pay Humana a $1 billion break-up fee, in accordance with the agreement.
"While we continue to believe that a combined company would create greater value for health care consumers… the current environment makes it too challenging to continue pursuing the transaction," Mark Bertolini, Aetna chairman and CEO said in a statement. "We are disappointed to take this course of action after 19 months of planning, but both companies need to move forward with their respective strategies in order to continue to meet member expectations."
Humana said the termination fee would amount to $630 million, after tax. The health insurer said it will issue 2017 financial guidance after the closing bell Tuesday, and discuss its outlooks with investors in a conference call at 4:15 pm ET.
Click here for the full article.