Humana announced Tuesday that it was terminating its merger agreement with its health-insurance counterpart Aetna after a federal judge blocked the deal.
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NO DEAL: Aetna and Humana call off their $34 billion merger (AET, HUM)
Humana is entitled to a breakup fee of $1 billion, or $630 million excluding taxes.
Aetna chairman and CEO Mark Bertolini speaks during the Fortune Global Forum on November 3, 2015.
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Aetna will pay Humana a breakup fee of $1 billion, or $630 million excluding taxes, according to terms of the original agreement.
Both companies would have combined to form the second-largest health insurer in the US. However, the deal faced strong judicial scrutiny on grounds that it would reduce competition in their industry and make insurance more expensive.
In January, a federal judge blocked the deal on antitrust grounds, arguing that the new company would increase the already rising costs of healthcare coverage for consumers.
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Rival companies Anthem and Cigna are still working to close a $54 billion deal that would create the largest US health insurer based on the number of people covered. A federal judge also blocked the deal citing competition concerns. In a statement after the ruling, Anthem CEO Joseph Swedish said the company
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