Cigna Pulls Out of Humana Merger, Shifts Focus to Smaller Acquisitions
Updated Dec. 10, 2023 12:38 pm ET
In a surprising move, Cigna has abandoned its plans to merge with Humana, a decision that would have created a healthcare industry giant with a combined value of approximately $140 billion. According to sources familiar with the matter, the two companies were unable to reach an agreement on price and other financial terms, leading to the collapse of the deal.
Following this development, Cigna has announced a shift in its strategy, turning its attention towards smaller acquisitions, often referred to as “bolt-on” acquisitions. This change in direction marks a significant departure from the company’s previously aggressive growth plans through large-scale mergers and acquisitions.
The decision by Cigna to pull out of the merger with Humana comes at a time of rapid consolidation within the healthcare industry. Companies are seeking to expand their reach and diversify their offerings in response to changing market dynamics and regulatory shifts. The failed merger between Cigna and Humana underscores the challenges and complexities that can arise in such high-stakes deals.
While the exact reasons for the breakdown of negotiations between Cigna and Humana have not been publicly disclosed, it is clear that both companies will need to reassess their strategic priorities in light of this unexpected turn of events.
As the healthcare landscape continues to evolve, industry analysts will be closely watching Cigna’s next moves as it navigates the aftermath of this failed merger and seeks new opportunities for growth and expansion.
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