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Cigna Abandons Humana Merger
Cigna ends merger talks with Humana, citing established M&A criteria.
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United States
Us PoliticsHealthHealthcareFinanceBusinessMergerInsurance
Cigna GroupHumanaNew York Stock Exchange (Nyse)ReutersBloomberg News
Donald TrumpJulie UtterbackDavid Cordani
- Why did Cigna Group decide against merging with Humana?
- Cigna Group announced it will not pursue a merger with Humana, despite increased investor speculation following Donald Trump's reelection that antitrust concerns might lessen.
- What is the history of merger talks between Cigna and Humana?
- Bloomberg News reported in October that Cigna had renewed efforts to merge with Humana, but Reuters previously reported that Cigna ended merger talks due to disagreements on price.
- How did the stock prices of Humana and Cigna react to the announcement?
- Humana's shares fell over 5% after Cigna's announcement, while Cigna's stock rose nearly 8% in premarket trading. This reflects investor reaction to the removed uncertainty.
- What criteria did Cigna state it uses for evaluating mergers and acquisitions?
- Cigna cited its established M&A criteria, requiring strategic alignment, financial attractiveness, and a high probability of closing, as the reason for ending pursuit of a merger with Humana.
- What challenges are facing the Medicare Advantage market and how is Cigna responding?
- The Medicare Advantage market is facing pressure due to high medical costs, impacting Medicare-focused insurers like Humana. Cigna is selling its Medicare Advantage business and focusing on share buybacks.