US court blocks Anthem-Cigna $54-billion deal
NEW YORK: A federal judge on Wednesday ruled against US health insurer Anthem Inc’s proposed $54-billion merger with smaller rival Cigna Corp, derailing an unprecedented effort to consolidate the country’s health insurance industry.
The US Justice Department sued in July to stop Anthem’s purchase of Cigna, a deal that would have created the largest US health insurer by membership, and Aetna Inc’s planned $33 billion acquisition of Humana.
On Wednesday, Judge Amy Berman Jackson of the US District Court issued the ruling against Anthem’s deal under seal. Last month, a different US judge ruled against Aetna’s proposed deal for Humana. Cigna is entitled to receive from Anthem a $1.85 billion break-up fee if the deal fails to win regulatory approval.
The US Justice Department sued in July to stop Anthem’s purchase of Cigna, a deal that would have created the largest US health insurer by membership, and Aetna Inc’s planned $33 billion acquisition of Humana.
On Wednesday, Judge Amy Berman Jackson of the US District Court issued the ruling against Anthem’s deal under seal. Last month, a different US judge ruled against Aetna’s proposed deal for Humana. Cigna is entitled to receive from Anthem a $1.85 billion break-up fee if the deal fails to win regulatory approval.
