Cigna and Humana have called off merger talks after failing to agree on a price “and other financial terms,” the Wall Street Journal reported on December 10.
The news comes less than two weeks after the WSJ first reported about the insurance companies exploring plans to create a combined insurer that would have rivaled giants UnitedHealth Group and CVS Health. A deal was expected to be finalized by the end of the year and would have been the largest merger of 2023 across all industries.
David Cordani, Cigna’s chair and CEO, said in a statement that the company plans to consider smaller acquisitions but didn’t address the scrapped Humana deal. He also announced Cigna’s plan to buy back $10 billion in shares.
“We believe Cigna’s shares are significantly undervalued and repurchases represent a value-enhancing deployment of capital as we work to support high-quality care, improved affordability, and better health outcomes,” Cordani said.
Cigna is also still looking to sell its Medicare Advantage business, which could be worth several billion dollars, the WSJ reported.
Neither Cigna nor Humana responded to Healthcare Brew’s request for comment.
Navigate the healthcare industry
Healthcare Brew covers pharmaceutical developments, health startups, the latest tech, and how it impacts hospitals and providers to keep administrators and providers informed.