TDR Capital International - Cigna and Humana Shares Fall After Possible Merger Report

KOWLOON, Hong Kong - Nov. 29, 2023 - PRLog -- Amid intraday trading, Cigna Group (CI) and Humana Inc. (HUM) shares experienced a significant downturn following a rumor circulating regarding a potential merger of operations between the two prominent health insurance companies.

The Wall Street Journal reported at lunchtime on Wednesday that the businesses were apparently considering a stock-and-cash merger that would unite them into one health insurance behemoth. The arrangement would consolidate the companies into a single entity.

The federal government's antitrust restrictions have prevented similar mergers from occurring inside the health care business.

It is a challenge that Humana is well-versed in, since the firm was scheduled to be bought by Aetna in the year 2015; however, the United States government put a stop to the transaction in 2017 owing to worries over the level of competition in the market.

On Wednesday, shares of Cigna suffered a decline of more than 8%, while those of Humana plummeted by over 5.5%.

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